Reporting earnings per share [10-15 min]Return to the RAR data in Short Exercise RAR had 1...

Reporting earnings per share [10-15 min]

Return to the RAR data in Short Exercise RAR had 13,500 shares of common stock outstanding during 2012. RAR declared and paid preferred dividends of$3,000 during 2012.

Requirement

1. Show how RAR reported EPS data on its 2012 income statement.

Preparing a corporate income statement [10-15 min]

RAR Corporation’s accounting records include the following items, listed in no particular order, at December 31, 2012:

Income tax of 30% applies to all items.

Requirement

1. Prepare RAR’s income statement for the year ended December 31, 2012. Omit earnings per share.