Question

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 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	$	1,620
Accounts receivable		2,340
Interest receivable		270
Prepaid insurance		1,750
Long-term notes receivable		2,890
Equipment		16,000
Accumulated depreciation				$	2,930
Accounts payable					2,290
Dividends payable					600
Accrued expenses payable					3,850
Income taxes payable					2,510
Unearned rent revenue					410
Common Stock (830 shares)					83
Additional paid-in capital					3,567
Retained earnings					3,570
Sales revenue					37,250
Interest revenue					170
Rent revenue					570
Wages expense		18,200
Depreciation expense		1,750
Utilities expense		330
Insurance expense		790
Rent expense		9,100
Income tax expense		2,760
Total	$	57,800		$	57,800

Prepare a statement of stockholders' equity for the current year. (Reductions in account balances should be indicated with a minus sign.)

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 For the current year Total dditional Common Stock Paid-in Capital Retained Earnings Stockholders' Equity $ $ 4,170 Balance, January 1 Share issuance 23 60 Dividends declared Net income Balance, December 31

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Catena Marketing Company
Income Statement for the year ended December 31.				Statement of Stockholder's equity
Particulars	Amount $	Amount $			Common Stock	Additional Paid in capital	Retained Earnings	Total
Sales Revenue	37,250.00			Balance, January 1	23.00	1,227.00	4,170.00	5,420.00
Less: returns and allowances	-			Share Issuance	60.00	2,340.00		2,400.00
Net Sales		37,250.00		Dividends			(600.00)	(600.00)
Cost of goods sold				Income			59,360.00	59,360.00
Gross Profit		37,250.00		Closing Balance	83.00	3,567.00	62,930.00	66,580.00
Wages Expense	18,200.00
Depreciation Expense	1,750.00
Utilities Expense	330.00
Insurance Expense	790.00
Rent Expense	9,100.00
Operating Expense		30,170.00
Operating Income		7,080.00
Interest Income	170.00
Rent Income	570.00
Other expense and income		740.00
Income before tax		7,820.00
Tax expense		2,760.00
Income from continuing operations		5,060.00
Gain on Discontinued Operations before tax		54,300.00
Net Income		59,360.00