BE 1-5 Statement of stockholders' equity Using the income statement for Paradise Travel Service from Basic Exercise 1-4, prepare a state- Obj. 5 ment of stockholders' equity for the year ended May 31, 20Y6. Everett McCauley invested an addi- tional $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. BE 1-5 Statement of stockholders' equity dick! Obj. 5 Using the income statement for Paradise Travel Service from Basic Exercise 1-4, prepare a state- ment of stockholders' equity for the year ended May 31, 20Y6. Everett McCauley invested an addi- tional $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. *