179.Given the following information about a corporation's current year activities, compute the retained earnings for the current year.
180.Explain where each of the following items should appear in the financial statements of a corporation:
(1) The accounting department discovered that an entry was made last year to Insurance Expense instead of to Prepaid Insurance. The after-tax effect of the charge to Insurance Expense was $5,000.
(2) The company grants five of its employees the option to purchase 100 shares of its $5 par value common stock at its current market price of $20 per share anytime with the next five years. None of the employees exercised the options in the current year.
181.Shaw Corporation reported stockholders' equity on December 31 of the prior year as follows:
Common stock, $5 par value, 1,000,000 shares authorized, 500,000 shares issued$2,500,000
Paid-in capital in excess of par, common stock1,000,000
Retained earnings3,000,000
The following selected transactions occurred during the current year:
Feb. 15The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share.
Mar. 9Distributed the stock dividend.
May 1A cash dividend of $0.30 per share was declared by the board of directors to stockholders of record on May 20, payable June 1.
June 1Paid the cash dividend.
Aug. 20The board decided to split the stock 4-for-1, effective on September 1.
Sept. 1Stock split 4-for-1.
Dec. 31Earned a net income of $800,000 for the current year.
Prepare a statement of retained earnings as of December 31 of the current year.
182.Beagle Company earned $90,000 in income and paid cash dividends of $7,000 to preferred shareholders during the current year. Beagle had 15,500 weighted-average shares of common stock outstanding for the year. Calculate the company's earnings per share.