Answer:
Paradise Travel Service
Statement of Stockholders' Equity:
Common Stock, June 1, 20Y5 $60,000
Issued Common stock 40,000
Retained earnings $425,000
Total equity $525,000
Explanation:
a) Data and Calculations:
Income Statement:
Fees earned $900,000
Office expense 300,000
Miscellaneous expense 15,000
Wages expense 450,000 765,000
Net income $135,000
Retained Earnings Statement:
Retained earnings, June 1, 20Y5 $300,000
Net income 135,000
Dividends (10,000)
Retained earnings, May 31, 20Y6 $425,000
