Question

Chapter 4

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $600 were declared at the end of the year, and 660 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,640 in cash (for a total at the end of the year of 810 shares). These effects are included below:

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $600 were declared at the end of the year, and 660 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,640 in cash (for a total at the end of the year of 810 shares). These effects are included below: Catena's Marketing Company Adjusted Trial Balance End of the Current Year Debit Credit Cash $ 1,540 Accounts receivable 2,330 Interest receivable 250 Prepaid insurance 1,710 Long-term notes receivable 2,910 Equipment 16,500 Accumulated depreciation $ 2,990 Accounts payable 2,320 Dividends payable 600 Accrued expenses payable 3,750 Income taxes payable 2,520 Unearned rent revenue 420 Common Stock (810 shares) 81 Additional paid-in capital 3, 489 Retained earnings 5,450 Sales revenue 37,050 Interest revenue 130 Rent revenue 620 Wages expense 18,700 Depreciation expense 1,790 Utilities expense 330 Insurance expense 770 Rent expense 9,800 Income tax expense 2,790 Total $ 59,420 $ 59,420 Prepare a statement of stockholders' equity for the current year. (Reductions in account balances should be indicated with a minus sign.) CATENA'S MARKETING COMPANY Statement of Stockholders' Equity Common Stock Additional Paid-in Capital Retained Earnings Total Stockholders' Equity Balance, January 1 Balance, December 31

Answer 1

Balance, January 1 share issurance S Net income Dividends Declared Balance, December 31 CATENA'S MARKETING COMPANY Statement of stockholders' Equity For the Current Year Ended December 31 Common stock | Additional Paid-in Capital Retained Earnings Total Stockholders' Equity 15 $ 915 $ 5,450 $ 6,380 66 S 2.574 2.640 S 3,620 S 3,620 (600) $ (600) S 81 $ 3,489 S 8.470 S 12.040

37,800 Working Notes: CATENA'S MARKETING COMPANY Income Statement for the Current Year Ended december 31 Revenue Sales Revenue $ 37,050 Interest revenue S 130 Rent revenue $ 620 Total revenue Expenses: Wages Expenses $ 18,700 Depreciation Expenses S 1.790 utilities Expense S Insurance Expense 770 Rent expense 9,800 Income Tax expense S 2.790 Total expenses Net Income 330 34,180 3,620