During 2021, its first year of operations, Pave Construction provides services on account of $160,000. By the end of 2021, cash
collections on these accounts total $110,000. Pave estimates that 25% of the uncollected accounts will be uncollectible. In 2022, the company writes off uncollectible accounts of $10,000. Required:
1. Record the adjusting entry for uncollectible accounts on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
2-a. Record the write-off of accounts receivable in 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
1. Record the adjusting entry for uncollectible accounts on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
2-a. Record the write-off of accounts receivable in 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
1 answer:
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THE COMPANY'S EARNING PER SHARE FOR THE YEAR WILL BE $2.30 PER SHARE.
Explanation:
FOR CALCULATING EARNING PER SHARE WE HAVE TO USED THE FOLLOWING FORMULA:
EARNING PER SHARE =
GIVEN:
NET INCOME = $9,660,000
NO. OF OUTSTANDING SHARE AT BEGINNING OF YEAR = 4,100,000
NO. OF OUTSTANDING SHARE AT END OF YEAR = 4,300,000
AS PER GIVEN FORMULA :
AVERAGE COMMON STOCK OUT STANDING = = 4200000 SHARES
NOW WE WILL FIND EARNING PER SHARE USING ABOVE FORMULA:
EARNING PER SHARE = $ 2.30 PER SHARE