Question

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.

Answer 1

Answer:

The statement of stockholders’ equity for the month ended October 31 is $18,450,000.

Explanation:

Noric Cruises Inc.

Statement of stockholders’ equity for the month ended October 31

                                 Common stock    Paid-In Capital    Retained Earnings

Opening balance         $150,000              $3,225,000          $12,400,000

Addition                         800,000                        -                               -

Net income                           -                               -                    $2,350,000

Cash dividends                    -                                -                        (475,000)

Balance at Oct 31        $950,000    $3,225,000    $14,275,000