Statement of stockholders' equity
The revenues and expenses of Paradise Travel Service for the year ended May 31, 206, follow:
Fees earned
$900,000
Office expense
300,000
Miscellaneous expense
15,000
Wages expense
450,000
Everett McCauley invested an additional $40,000 in the business in exchange for common stock, and $10,000 of dividends were paid during the year. Common June 1, 205.
Prepare a statement of stockholders' equity for the year ended May 31, 206.
Paradise Travel Service
Statement of Stockholders' Equity
For the Year Ended May 31, 206
Common Stock Retained Earnings
Balances, June 1, 20Y5
60.000
300,000 V
Issued common stock
40,000
1♥
Net income
I x
Total
$ 360.000
V
40.000
V
Dividends
0
10,000
10.000