The financial statements of Planet Media Inc. included the following selected information at December 31, 2015:
Common shares .......... $ 1,600,000
Retained earnings .........900,000
Net earnings ............ 1,000,000
Dividends declared ........800,000
The common shares were sold at $ 20 per share.
Required:
1. What was the amount of retained earnings at the beginning of 2015?
2. Compute EPS.
3. Prepare the shareholders’ equity section of the company’s statement of financial position at December 31, 2015.