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3 years ago

The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow:

Business

1 answer:

Hitman42 [59]3 years ago

3 0

Answer:

Common Stock 100,000

Retained Earnings 425,000

Total 525,000

Explanation:

Paradise Travel Service Statement of Net Income

Fees Earned : 900,000

Less Office Expense : (300,000)

Less Miscelleaneous Expenses :( 15,000)

Less Wages expense (450,000)

Net Earnings 135,000

Paradise Travel Service statement of stockholders’ equity for the year ended May 31, 20Y6

Common stock Retained Earning Total

Balance Jan 1 60,000 300,000 360,000

Additional Invested capital

40,000 - 40,000

Net Income :

- $135,000 $135,000

Less Dividends paid

- ($10,000) ($10,000)

Balance, May 31 20y6

100000 425000 525000

Common Stock 100,000

Retained Earnings 425,000

Total 525,000

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DeLong Corporation was organized on January 1, 2017. It is authorized to issue 14,500 shares of 8%, $100 par value preferred sto

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Answer and Explanation:

According to the scenario, computation of the given data are as follow:

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On May 1

Cash A/c ($5 × 84,000) Dr. $420,000

To Common stock A/C($3 × 84,000) $252,000

To Paid in capital in excess of stated value common stock A/c $168,000

(Being the issuance of the common stock is recorded)

On Aug. 1

Organizational expenses A/c Dr. $39,500

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On Sep 1

Cash A/c ($7 × 11,500) Dr. $80,500

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3 years ago

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Answer:

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Answer:

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