Reference no: EM131795915

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.