Question

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $590 were declared at the end of the year, and 650 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,800 in cash (for a total at the end of the year of 820 shares). These effects are included below: Credit Catena's Marketing Company Adjusted Trial Balance End of the Current Year Debit Cash $ 1,330 Accounts receivable 2,300 Interest receivable 150 Prepaid insurance 1,750 Long-term notes receivable Equipment Accumulated depreciation Accounts payable Dividends payable Accrued expenses payable Income taxes payable Unearned rent revenue Common Stock (820 shares) Additional paid-in capital Retained earnings Sales revenue Interest revenue Rent revenue Wages expense 19,400 Depreciation expense Utilities expense Insurance expense $ 3,090 2,210 590 3,840 2,530 550 m OOO ON OOOO

Answer 1

Closing entry

Date	General Journal	Debit	Credit
	Sales revenue	37810
	Interest revenue	110
	Rent revenue	750
	wages expense		19400
	Depreciation expense		1660
	Utilities expense		260
	Insurance expense		750
	Retained earnings		16600
	(To closing entry)