On March 31, 2019, Legends Entertainment, Inc. had common stock of $230,000, paid-in capital in excess of par of $540,000, and retained earnings of $65,000. During the following year, 500 shares of stock were sold for $60,000, of which $40,000 represented paid-in capital in excess of par. The company reported net income of $140,000 for the year ended March 31, 2020. Also during the year, $80,000 of dividends were declared and paid.

Prepare the Statement of Stockholders' Equity at March 31, 2020.

Question

On March 31, 2019, Legends Entertainment, Inc. had common stock of $230,000, paid-in capital in excess of par of $540,000, and retained earnings of $65,000. During the following year, 500 shares of stock were sold for $60,000, of which $40,000 represented paid-in capital in excess of par. The company reported net income of $140,000 for the year ended March 31, 2020. Also during the year, $80,000 of dividends were declared and paid.
​
Prepare the Statement of Stockholders' Equity at March 31, 2020.

Quizplus · Accepted Answer

The Answer of On March 31, 2019, Legends Entertainment, Inc. had common stock of $230,000, paid-in capital in excess of par of $540,000, and retained earnings of $65,000. During the following year, 500 shares of stock were sold for $60,000, of which $40,000 represented paid-in capital in excess of par. The company reported net income of $140,000 for the year ended March 31, 2020. Also during the year, $80,000 of dividends were declared and paid.
​
Prepare the Statement of Stockholders' Equity at March 31, 2020.