(Learning Objective 3: Preparing a staement of stockholders’ equity) 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 dividend 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 common stock 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 .