Answer:
Statement of Owners' Equity
For the Year Ended May 31, 20Y6
Common stock account balance June 1, 20Y5 $60,000
Retained earnings account balance June 1, 20Y5 $300,000
Common stock issued during the year $40,000
Net income <u> $135,000</u>
Subtotal $535,000
Dividends distributed <u> ($10,000)</u>
Total stockholders' equity $525,000
- Common stock balance May 31, 20Y6 $100,000
- Retained earnings balance May 31, 20Y6 $425,000
Explanation:
net profit = $900,000 - $300,000 - $15,000 - $450,000 = $135,000
