Range Energy Corp.s financial statements for the current year ended December 31, 2017, have been completed and
Question:
Range Energy Corp.’s financial statements for the current year ended December 31, 2017, have been completed and submitted to you for review. The equity account balances a year ago, at December 31, 2016, are as follows:
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Preferred shares, $4.20 non-cumulative, 12,000 shares authorized, | $768,050 |
Common shares, unlimited shares authorized, | 1,460,350 |
Retained earnings | 705,795 |
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The only share transactions during 2017 were the declaration and distribution of a 28,000 common share dividend on July 1 and the issuance of 18,000 common shares for cash on October 31. The company’s 2017 profit was $630,880. A cash dividend on the preferred shares was declared on December 1, but was not paid as of December 31. Earnings per share for 2017 were calculated as follows:
Profit | = | $630,880 | = | $3.39 |
Common shares outstanding on Dec. 31, 2017 | 186,000 |
Required:
1-a. The earnings per share is incorrect. Indicate what changes should be made to the numerator and the denominator?
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Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann