1. In 2012, Hollis Corporation reported net income of $1,000,000. It declared and paid preferred stock dividends of $250,000. During 2012, Hollis had a weighted average of 190,000 common shares outstanding.
Compute Hollis’s 2012 earnings per share.
2. Portman Corporation has retained earnings of $675,000 at January 1, 2012. Net income during 2012 was $1,400,000, and cash dividends declared and paid during 2012 totaled $75,000.
Prepare a retained earnings statement for the year ended December 31, 2012.
3. Using the information from BE4 9, prepare a retained earnings statement for the year ended December 31, 2012.
Assume an error was discovered: land costing $80,000 (net of tax) was charged to maintenance and repairs expense in 2009.