Question 1 - Computation of Retained Earnings - The following information has been taken from the ledger accounts of Isaac Stern Corporation.
Total income since incorporation $317,000
Total cash dividends paid 60,000
Total value of stock dividends distributed 30,000
Gains on treasury stock transactions 18,000
Unamortized discount on bonds payable 32,000
Instructions - Determine the current balance of retained earnings.
Question 2 - EPS: Simple Capital Structure - Flagstad Inc. presented the following data.
Net income - $2,500,000
Preferred stock: 50,000 shares outstanding, 5100 par, 8% cumulative, not convertible - 5,000,000
Common stock: Shares outstanding 1/1 - 750,000
Issued for cash, 5/1 - 300,000
Acquired treasury stock for cash, 8/1 2-for-1 stock split, 10/1 - 150,000
Instructions - Compute earnings per share.