Statement of stockholders’ equity Obj. 5 Using the income statement for Paradise Travel Service from Basic Exercise 1-4, prepare a statement of stockholders’ equity for the year ended May 31, 20Y6. Everett McCauley invested an additional

$40,000 in the business in exchange for common stock, and $10,000 of dividends were paid during the year. Common stock had a balance of $60,000 and retained earnings had a balance of

$300,000 as of June 1, 20Y5.

AppendixLO1