Question

Statement of stockholders' equity The revenues and expenses of Paradise Travel Service for the year ended May 31, 2016, follow: Fees eamed $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 stock had a balance of $60,000 and retained earnings had a balance of $300,000 as of June 1, 20YS. Prepare a statement of stockholders' equity for the year ended May 31, 2016. Paradise Travel Service Statement of Stockholders' Equity For the Year Ended May 31, 2046 Common Stock Retained Earnings Total Balances, June 1, 2015 Office expense 300.000 X 300.000 Net income Dividends Balances, May 31, 2016 Check My Work Partially correct

Answer 1

Statement of Net Income Fees Earned Less: Office Expense Less: Miscelleaneous Expenses Less: Wages expense Net Earnings 900000 -300000 - 15000 - 450000 135000 Balance June 1 20y5 Additional invested capital Net Income Less: Dividends paid Balance, May 31 20y6 Common Stock Retained Earnings Total 60000 300000 360000 40000 40000 135000 135000 -10000-10000 100000 425000 525000

Statement of Net Income Fees Earned Less: Office Expense Less: Miscelleaneous Expenses Less: Wages expense Net Earnings 900000 -300000 - 15000 - 450000 135000 Balance June 1 20y5 Additional invested capital Net Income Less: Dividends paid Balance, May 31 20y6 Common Stock Retained Earnings Total 60000 300000 360000 40000 40000 135000 135000 -10000-10000 100000 425000 525000

updated answer

Statement of Net Income
Fees Earned	$900,000.00
Less: Office Expense	-$300,000.00
Less: Miscelleaneous Expenses	-$15,000.00
Less: Wages expense	-$450,000.00
Net Earnings	$135,000.00
	Common Stock	Retained Earnings	Total
Balance June 1 20y5	$60,000.00	$300,000.00	$360,000.00
Additional invested capital	$40,000.00		$40,000.00
Net Income		$135,000.00	$135,000.00
Less: Dividends paid		-$10,000.00	-$10,000.00
Balance , May 31 20y6	$100,000.00	$425,000.00	$525,000.00