Question

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $630 were declared at the end of the year, and 600 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,400 in cash (for a total at the end of the year of 830 shares). These effects are included below:

Catena's Marketing Company Adjusted Trial Balance End of the Current Year Debit Credit Cash $ 1,560 Accounts receivable 2,370 Interest receivable 260 Prepaid insurance 1,620 Long-term notes receivable 2,890 Equipment 16,300 Accumulated depreciation 2,920 Accounts payable 2,330 Dividends payable Accrued expenses payable Income taxes payable 2,540 Unearned rent revenue 410 Common Stock (830 shares) Additional paid-in capital Retained earnings Sales revenue 37,550 Interest revenue 180 Rent revenue 710 Wages expense 18,100 Depreciation expense 1,780 Utilities expense 350 Insurance expense 710 Rent expense 9,500 Income tax expense 2,770 Total $ 58,210 $ 58,210 83 3,577

Answer 1

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Catena's Marketing Company
	Amount $	Note
Sale value of share	2,400.00
Less: Par value of share	60.00
Additional Paid in capital	2,340.00	A
Closing balance- Additional Paid in capital	3,577.00
Less: During the year	2,340.00	See A
Opening balance- Additional Paid in capital	1,237.00	B
Closing balance- Retained Earnings	3,380.00
Add: Dividend	630.00
Opening balance- Retained Earnings	4,010.00	C
Income Statement
Sales Revenue	37,550.00
Interest Revenue	180.00
Rent Revenue	710.00
Total Revenue	38,440.00
Less: Expenses
Wages	18,100.00
Depreciation	1,780.00
Utilities	350.00
Insurance	710.00
Rent	9,500.00
Income Tax	2,770.00
Total expense	33,210.00
Net Income	5,230.00	D
Statement of stockholder's equity
	Common Stock	Additional Paid in capital	Retained Earnings	Total stockholder's equity
Balance, January 1	23.00	1,237.00	4,010.00	5,270.00	See Note B and C
Share Issuance	60.00	2,340.00		2,400.00	See Note A
Dividends Declared			(630.00)	(630.00)
Net Income			5,230.00	5,230.00	See Note D
Balance, December 31	83.00	3,577.00	8,610.00	12,270.00