At December 31, 20X4, Lake Air Mall, Inc., reported stockholders' equity as follows: Common stock, $1 par,

Question:

At December 31, 20X4, Lake Air Mall, Inc., reported stockholders' equity as follows:
Common stock, $1 par, 500,000 shares
authorized, 320,000 shares issued ........................ $ 320,000
Additional paid-in capital....................................... 600,000
Retained earnings................................................... 680,000
$1,600,000
During 20X5, Lake Air Mall completed these transactions (listed in chronological order):
a. Declared and issued a 5% stock on the outstanding stock. At the time, Lake Air Mall stock was quoted at a market price of $10 per share.
b. Issued 20,000 shares of at the price of $12 per share.
c. Net income for the year, $340,000.
d. Declared cash dividends of $100,000.
Required
Prepare Lake Air Mall, Inc.'s, statement of stockholders' equity for 20X5, using the format of Exhibit 11-4 as a model.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...