Using the income statement for A-One Travel Service from Basic Exercise 1-4, prepare a statement of stockholders’ equity for the year ended August 31, 20Y6. Kate Duffner invested an additional $15,000 in the business in exchange for common stock, and $50,000 of dividends were paid during the year. Common stock had a balance of $60,000 and retained earnings had a balance of $775,000 as of September 1, 20Y5.

Basic Exercise 1-4

Income statement
The revenues and expenses of A-One Travel Service for the year ended August 31, 20Y6, follow:

Prepare an income statement for the year ended August 31, 20Y6.

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Fees earned $1,150,000 Office expense Miscellaneous expense 150,000 45,000 Wages expense 640,000