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 610 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,440 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 $ 1,570 Accounts receivable 2,360 Interest receivable 110 Prepaid insurance 1,660 Long-term notes receivable 2,830 Equipment 15,000 Accumulated depreciation $ 2,960 Accounts payable 2,360 Dividends payable 600 Accrued expenses payable 3,840 Income taxes payable 2,530 Unearned rent revenue 430 Common Stock (830 shares) 83 Additional paid-in capital 3,487 Retained earnings 2,840 Sales revenue 37, 350 Interest revenue 130 Rent revenue 590 Wages expense 18,500 Depreciation expense 1.780 Utilities expense Insurance expense 790 Rent expense 9,500 Income tax expense 2,700 Total $ 57,200 $ 57,200 400

Answer 1

Answer:

CATENA'S MARKETING COMPANY
Statement of stockholders equity
For the year ended December 31
	Common stock	Additional paid in capital	Retained earnings	Total stockholders equity
Balance, January 1	$                      22	$                                      1,108	$                       2,840	$                                        3,970
Share issuance	$                      61	$                                      2,379		$                                        2,440
Net income			$                       4,400	$                                        4,400
Dividends declared			$                         (600)	$                                         (600)
				$                                               -
Balance, December 31	$                      83	$                                      3,487	$                       6,640	$                                     10,210

Calculations:

CATENA'S MARKETING COMPANY
Statement of stockholders equity
For the year ended December 31
	Common stock	Additional paid in capital	Retained earnings	Total stockholders equity
Balance, January 1	220*0.1	3487-2379	$                       2,840	$                                        3,970
Share issuance	610*0.1	2440-61		$                                        2,440
Net income			37350+130+590-18500-1780-400-790-9500-2700	$                                        4,400
Dividends declared			$                         (600)	$                                         (600)