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 630 additional shares of common stock (50.10 par value per share) were issued at the end of the year for $2.520 in cash for a total at the end of the year of 810 shares). These effects are included below 1,620 Catena's Marketing Company Adjusted Trial Balance End of the Current Year Debit Credit Cash $ 1,610 Accounts receivable 2,260 Interest receivable 280 Prepaid insurance Long-term notes receivable 2,899 Equipment 16,400 Accumulated depreciation $ 2,920 Accounts payable 2,210 Dividends payable 650 Accrued expenses payable 3,910 Income taxes payable 2,620 Unearned rent revenue 400 Common Stock (810 shares) Additional paid in capital 3,429 Retained earnings 3,850 Sales revenue 37,550 Interest revenue 120 Rent revenue 570 Wages expense 18,600 Depreciation expense 1,740 Utilities expense 320 Insurance expense 750 Rent expense 9,100 Income tax expense 2,740 Total $58,310 $ 58,310 Prepare a statement of stockholders' equity for the current year. (Reductions in account balances should be indicated with a minus sign.)

Answer 1

Solution; CATENA'S MARKETING COMPANY Statement of stockholder equity Common stock Addition PIC RE* 972 4500 2457 4990 -650 18 Bal, Jan 1 shares issuance (Note 1) Net income (Note 2) Dividend declared 63 Total stockholder equity 5490 2520 4990 -650 Bal, Dec 31 3429 8840 12350 *RE beg. Bal=3850+650 Note 1: Common stock APIC 630*0.1 2520-1630*0.1) 63 0*0.1 63 301021 2457 37550 Note 2: calculation of net income Sales revenue Interest revenue Rent revenue Total revenue 120 570 38240 Expenses wages expense Depr expense utilties expense Insurance expense Rent expense Income tax expense Total expense Net income 18600 1740 320 750 9100 2740 33250 4990