Question

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $650 were declared at the end of the year, and 580 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2.320 in cash (for a total at the end of the year of 840 shares). These effects are included below: Catena's Marketing Company Adjusted Trial Balance End of the Current Year Debit Credit Cash $ 1,580 Accounts receivable 2,320 Interest receivable 140 Prepaid insurance 1,680 Long-term notes receivable 2,920 Equipment 16,500 Accumulated depreciation $ 2,820 Accounts payable 2,350 Dividends payable 650 Accrued expenses payable 3,880 Income taxes payable 2,590 Unearned rent revenue Common Stock (840 shares) 84 Additional paid-in capital 3,586 Retained earnings 4,280 Sales revenue 37,250 Interest revenue 170 Rent revenue 700 Wages expense 18,700 Depreciation expense Utilities expense 370 Insurance expense 720 Rent expense 9,300 Income tax expense 2,789 Total $58, 790 $58, 790 430 1,789 Prepare a multistep income statement for the current year. (Round your earnings per share to 2 decimal places.) CATENA'S MARKETING COMPANY Income Statement Operating revenues

Answer 1

Catena'S Marketing Company
Income Statement
For The Current Year
Particulars	Amount	Amount
Operating Revenues
Sales Revenue		$37,250.00
Total Operating Revenues		$37,250.00
Less- Operating Expenses
Wages Expense	$18,700.00
Depreciation Expense	$1,780.00
Utilities Expense	$370.00
Insurance Expense	$720.00
Rent Expense	$9,300.00
Total Operating Expenses		$30,870.00
Operating Income		$6,380.00
Other Items
Interest Revenue	$170.00
Rent Revenue	$700.00	$870.00
Pretax Income		$7,250.00
Less- Income Tax Expense		-$2,780.00
Net Income		$4,470.00
Weighted Average No. Of Shares (840+(840-580))/2		550
Earning Per Share ( Net Income / WA No. of share)		$8.13