Question

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $630 were declared at the end of the year, and 550 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,200 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 $ 1,580 Accounts receivable 2,390 Interest receivable 300 Prepaid insurance 1,800 Long-term notes receivable 2,920 Equipment 16,300 Accumulated depreciation $ 2,930 Accounts payable 2,240 Dividends payable 630 Accrued expenses payable 3,770 Income taxes payable 2,590 Unearned rent revenue 360 Common Stock (830 shares) 83 Additional paid-in capital 3.477 Retained earnings 4,120 Sales revenue 37,650 Interest revenue Rent revenue 590 Wages expense 18,500 Depreciation expense 1,780 Utilities expense 320 Insurance expense 700 Rent expense 9,280 Income tax expense 2.750 Total $ 58,620 $ 58,620 180

Answer 1

Balance Sheet Assets current assets: ₂ Cash Accounts Receivables Interest Receivables Prepaid insurance Total current Assets Long term Notes Equipment 1580 2390 300 1800 6070 (0) (D) LE) 2.920 16,300 Total Assets (cHD +E) 25,292 29 30 2240 630 3770 2590 360 liabilities Current liabilities: ₃ Accumlated depreciation Accounts Payables Dividend payable Accrued expenses Income taxes unearned rent Total Current liabilities LE "share holder equity : Common stock 1830 shares) Additional pand in capital Retained Ear Earnings Net Profit for the year Total shareholder equity (6) Total liability & Equity (F+G) 12,820 83 3472 4120 Sogo 12,770 25,290 cs Scanned with CamScanner

Income statement $ 37, 650 sules Revenue Interest Revenue Rent Revenue 180 590 Total Revenue earned (A) 38, 420 L&, 500 4780 320 Wages Depreciation Utilities Insurance Rent In come tax Total Expense 700 4,280 2.750 33,330 1B) Net Profit (A-B) 5090 CS Scanned with CamScanner