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    Earnings per share of common stock

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    A corporation has the following stockholder's equity accounts at the end of the current fiscal year, after all closing entries have been posted: Common stock, $10 par, $2,000,000; Paid-In Capital in Excess of Par-Common Stock, $375,000; Retained Earnings, $1,285,000. The earnings for the current year, during which there were no unusual item, were $350,000.

    Compute the earnings per share of common stock.

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    Solution Preview

    Earnings per share = Net Income/Number of common shares outstanding
    The net income is given as $350,000
    The total amount in the ...

    Solution Summary

    The solution explains how to determine the earnings per share of common stock