Answer:
(a) Net income $198,788
(b) Retained earnings at 12/31/17 = 3,145,448
(c) <u>Note to the account:</u>
Earnings per share for the year is $0.02 per share. That is:
Earnings per share = Net income / Number of common stock outstanding = $198,788 / 10,000,000 = $0.02 per share
Explanation:
Note: See the attached excel file for the multiple-step income statement.
A multi-step income statement refers to an income statement in which the gross profit and the categories of each expenses and income are giving in details before the net income of a company in a specific period is obtained.
The multiple-step income statement of Hardrock Mining Co. for 2017 is given in the attached excel file in which we have the following:
(a) Net income $198,788
(b) Retained earnings at 12/31/17 = 3,145,448
<u>Calculation of earnings per share for the year</u>
The earnings per share can be calculated as follows:
Earnings per share = Net income / Number of common stock outstanding = $198,788 / 10,000,000 = $0.02 per share
Therefore, earnings per share of the company for the year is $0.02 per share.
The note to the account that disclose earnings per share data in the financial statement of Hardrock Mining Co. for 2017 will appear as follows:
<u>Note to the account:</u>
Earnings per share for the year is $0.02 per share. That is:
Earnings per share = Net income / Number of common stock outstanding = $198,788 / 10,000,000 = $0.02 per share
