Question

help me with the ones i got wrong please

results for the month ended October 31: Net income $2,350,000 Cash dividends declared 475,000 Prepare a statement of stockholders' equity for the month ended October 31. If there is a net loss or there has been a decrease in stockholders' equity, enter that amount as a negative number using a minus sign. If an amount box does not require an entry, leave it blank. Noric Cruises Inc. Statement of Stockholders' Equity For the Month Ended October 31 Additional Paid-In Capital Common Stock Retained Earnings 12,400,000 Total Balances, October 1 150,000 $ 3,225,000 $ 15,775,000 Issued Common Stock 50,000 750,000 800,000 Net Income 2,350,000 ✓ 2,350,000 Dividends 475,000 475,000 Balances, October 31 200,000 $ 3,975,000 $ 15,225,000 X $ 19,400,000 X The statement of stockholders' equity shows the beginning balances of common stock and retained

Answer 1

Answer

--Everything is CORRECT except for DIVIDEND.

--The instruction states to use NEGATIVE NUMBER WITH MINUS SIGN.

--Dividend Decreases RETAINED EARNINGS, and hence SHOULD BE DEDUCTED.

--Therefore, you have to write $ 475,000 with a MINUS SIGN as a NEGATIVE AMOUNT.

--This will correct the resulting TOTALS also.

--Enter $ 475,000 Dividend amount as a NEGATIVE AMOUNT with a minus sign.