Oakwood Inc. Is a public enterprise who shares are traded in the over-the-counter market. At December 31, 2018, Oakwood had 6,000,000 authorized shares of $10 par value common stock, of which 2,000,000 shares were issued and outstanding. The shareholders equity accounts at December 31, 2018 had the following balances common stock $20,000 additional paid in capital on common stock 7,500,000 retained earnings 6,470,000 transactions during 2019 and other information related to the shareholders equity accounts were as follows:
Q: Concord Corporation is authorized to issue 23,500 shares of $50 par value, 10% preferred stock and…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Kohler Corporation reports the following components of stockholders' equity at December 31, 2018.…
A: Financial transactions are tracked via journal entries. You enter transaction data into your…
Q: On December 31, 2017, Berclair Inc. had 600 million shares of common stock and 7 million shares of…
A: Shares: - Total capital of a company s divided into units of small denominations. Each unit is known…
Q: At the beginning of 2018, Thompson Service, Inc., showed the following amounts in the stock-holders'…
A: Prepare journal entry for the given transactions (from January 3 to May 9).
Q: Peck Corporation is authorized to issue 20,000 shares of TK.50 par value,10% preferred stock and…
A: A journal entry is made to record the financial transaction in the books of accounts. T-account: The…
Q: Masters Corporation charter authorizes 7,800,000 shares of common stock and 760,000 sharesof…
A: Journal: Journal is the method of recording monetary business transactions in chronological order.…
Q: The Michael Company's stockholders' equity accounts have the following balances as of December 31,…
A: Outstanding shares = Shares issued - Treasury stock Outstanding shares = 25,000 - 2,000 Outstanding…
Q: Comprehensive Oakwood Inc. is a public enterprise whose shares are traded in the over-the-counter…
A: Statement of shareholder’s equity as follows: It is a financial statement that states the value of…
Q: 77,000 shares authorized and issued* 1,232,000
A: A Dividend is a payment given to stakeholders by a corporation. When a firm makes a profit or has a…
Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,850,000 authorized shares…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018.…
A: Journal entry is defined as recording of the transactions of the business into the books of accounts…
Q: On January 1, 2021, Thomson Inc. had the following account balances in its shareholders' equity…
A: Introduction: A journal entry is a record of a business arrangement in the accounting system of a…
Q: On Jan. 1, 2018, the following accounts and their balances appeared in the ledger of Fuentes…
A:
Q: Determine the balance of share premium to be reported in statement of financial position for the…
A: Share premium : As the name suggests, it is the premium amount paid by the subscribers or…
Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,600,000 authorized shares…
A: Treasury shares has debit account balance. It would be deducted to determine the stockholders'…
Q: Peck Corporation is authorized to issue 20,000 shares of TK.50 par value,10% preferred stock and…
A: The stockholders’ equity section of the entities’ balance sheet discloses its position relating to…
Q: Garda World Security Corporation has the following shares, taken from the equity section of its…
A: Dividend - Dividend is the amount paid by the company to its preference and common shareholder's.…
Q: The shareholders’ equity section of Superior Corporation’s balance sheet as of December 31, 2018, is…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018.…
A: Transactions are recorded chronologically following the rules of accounting.
Q: On January 1 2018, ACI Ltd. had 5,80,000 shares of common stock outstanding . During 2018, it had…
A: Earnings per share is a financial ratio that indicates a company’s ability to earn revenue for its…
Q: The shareholders’ equity section of Superior Corporation’s balance sheet as of December 31, 2018, is…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Alexander Corporation reports the following components of stockholders' equity at December 31, 2018.…
A: Out of the profit earned by the business organizations, some of the profit is distributed to the…
Q: Fark Tart Limited was a corporation that made hair growth stimulants. The company had 425,000…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of $10 par…
A: SHAREHOLDER'S EQUITY SHOWS HOW MUCH THE OWNERS OF A COMPANY HAVE INVESTED IN THE BUSINESS EITHER BY…
Q: Milton Company’s charter authorizes 1,000,000 shares of common stock and 400,000 shares of preferred…
A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…
Q: Truman Co. is a publicly held company whose shares are traded in the over-the-counter market. The…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Laurent Co, Incorporated, has 4,200,000 shares of common stock outstanding on December 31, 2017. An…
A: Laurent Co, Incorporated, has 4,200,000 shares of common stock outstanding on December 31, 2017. An…
Q: Fark Tart Limited was a corporation that made hair growth stimulants. The company had 425,000 shares…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Oakwood Inc. is a public enterprise whose shares are traded in the over-the-counter market. At…
A: Shareholders Equity section of balance sheet shows all total amount attributable to equity…
Q: The shareholders’ equity section of Superior Corporation’s balance sheet as of December 31, 2018, is…
A: Legal capital refers to the total equity of an entity that can not be distributed as a dividend to…
Q: Sarasota Corp. has been authorized to issue 20,400 shares of $100 par value, 6%, noncumulative…
A: Stockholders' equity: Stockholders' equity means the remaining net assets available to shareholders.…
Q: Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018.…
A: SOLUTION- REQUIREMENT-1 DATE PARTICULARS…
Q: Hill Corp. had 600,000 shares of common stock outstanding on January 1, issued 900,000 shares on…
A: Earnings per share is used to measure income earned per share. Earnings per share is equal to…
Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…
A: Shareholders equity comprises of share capital and reserves and surplus less treasury stock.
Q: Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018.…
A: At the time of purchase of own stock by the company, treasury stock account is debited with the cost…
Q: Mai Corporation was organized on January 1, 2016, During its first year, the corporation issued…
A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…
Q: Data Controls Corporation had 250,000 shares of common stock outstanding at the end of 2017. During…
A: The number of shares in a corporation computed after accounting for variations in the share capital…
Q: On its Balance Sheet dated December 31st, 2020, the Crazy Cookie Company reports the following…
A: A treasury stock is a reacquired stock, it is the stock bought back by the issuing company. It…
Q: Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 100,000…
A: Equity share capital refers capital which is raised by a corporation by offering shares.
Q: Eastport Inc. was organized on June 5, 2018. It was authorized to issue 470,000 shares of $8 par…
A: Stockholders' equity comprises of the issued capital, additional paid in capital, reserves.
Q: Peck Corporation is authorized to issue 20,000 shares of TK.50 par value,10% preferred stock and…
A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…
Q: On December 31, 2017, Berclair Inc. had 200 million shares of common stock and 3 million shares of…
A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…
Q: The shareholders’ equity section of Superior Corporation’s balance sheet as of December 31, 2018, is…
A: Capital means all the assets and cash in a business.
Q: Penn Company was formed on July 1, 2018. It was authorized to issue 300,000 shares of $10 par value…
A:
Q: Carlmont Corporation is authorized to issue 5,000,000 shares of $2 par value common stock. As of…
A: The treasury stock shares decreases the number of outstanding chares. The dividend is declared for…
Q: On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts.…
A: Common Stock: [Common stock – treasury stock] x 2 in 1 stock split [253000 – 5300] x 2/1 495,400 x…
Q: The shareholders' equity section of Superior Corporation's balance sheet as of December 31, 2015, is…
A: The question is based on the concept of Financial Accounting.
Oakwood Inc. Is a public enterprise who shares are traded in the over-the-counter market. At December 31, 2018, Oakwood had 6,000,000 authorized shares of $10 par value common stock, of which 2,000,000 shares were issued and outstanding. The shareholders equity accounts at December 31, 2018 had the following balances
common stock $20,000
additional paid in capital on common stock 7,500,000
transactions during 2019 and other information related to the shareholders equity accounts were as follows:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
- Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.
- Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.