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
