Question

The following events apply to Paradise Vacations's first year of operations: 1. Acquired $36,000 cash from the issue of common stock on January 1, 2018. 2. Purchased $1,600 of supplies on account. 3. Paid $6,120 cash in advance for a one-year lease on office space. 4. Earned $44,350 of revenue on account. 5. Incurred $14,900 of other operating expenses on account. 6. Collected $32,000 cash from accounts receivable. 7. Paid $9,800 cash on accounts payable. 8. Paid a $4,600 cash dividend to the stockholders. Information for Adjusting Entries 9. There was $310 of supplies on hand at the end of the accounting period. 0. The lease on the office space covered a one-year period beginning November 1 11. There was $5,200 of accrued salaries at the end of the period.

Answer 1

PARADISE VACATIONS
Statement of Changes in Stockholders Equity
For the year ended December 31, 2018
Beginning common stock	$             -
Issued during the year	$ 36,000
Ending common stock		$ 36,000
Beginning retained earnings	$             -
Net income ($44,350-14,900-(1,600-310)-(6,120/12*2)-5,200)	$ 21,940
Dividends paid	$ (4,600)
Ending retained earnings		$ 17,340
Total stockholders equity		$ 53,340

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