Question

Statement of stockholders’ equity Noric Cruises Inc. began the month of October with the following balances: Common Stock, $150,000; Additional Paid-In Capital, $3,225,000; and Retained Earnings, $12,400,000. During June, Noric issued for cash 50,000 shares of common stock (with a stated value of $1) at $16 per share. Noric reported the following results for the month ended October 31: Net income $2,350,000 Cash dividends declared 475,000 Prepare a statement of stockholders’ equity for the month ended October 31. If there is a net loss or there has been a decrease in stockholders' equity, enter that amount as a negative number using a minus sign. If an amount box does not require an entry, leave it blank. Noric Cruises Inc. Statement of Stockholders' Equity For the Month Ended October 31 Common Stock Additional Paid-In Capital Retained Earnings Total $ $ $ $ $ $ $ $

Answer 1

Answer and Explanation:

The preparation of the statement of stockholder equity is presented below:

Particulars      Common Stock    Additional Paid in Capital   Retained Earnings   Total

Balances, October 1   $150,000    $3,225,000    $12,400,000    $15,775,000

Issued Common Stock   $50,000   $750,000                              $800,000

                                 (50,000 shares × $1)                            (50,000 shares × $16)

Add:  Net Income                                                  $2,350,000       $2,350,000

Less:  Dividends                                                    -$475,000          -$475,000

Balances, October 31    $200,000    $3,975,000   $14,275,000   $1,8450,000