On May 1, 2015, Xiu Inc. had common stock of $345,000, additional paid-in capital of $1,298,000, and retained earnings of $3,013,000. Xiu did not purchase or sell any common stock during the year. The company reported net income of $556,000 and declared dividends in the amount of $78,000 during the year ended April 30, 2016.
REQUIRED:
Prepare a financial statement that explains the differences between the beginning and ending balances for the
accounts in the Stockholders' Equity category of the balance sheet.

Question

Quizplus · Accepted Answer

The Answer of On May 1, 2015, Xiu Inc. had common stock of $345,000, additional paid-in capital of $1,298,000, and retained earnings of $3,013,000. Xiu did not purchase or sell any common stock during the year. The company reported net income of $556,000 and declared dividends in the amount of $78,000 during the year ended April 30, 2016.
REQUIRED:
Prepare a financial statement that explains the differences between the beginning and ending balances for the
accounts in the Stockholders' Equity category of the balance sheet.