Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $675 were declared at the end of the year, and 500 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $3,300 in cash (for a total at the end of the year of 950 shares). These effects are included below: Catena’s Marketing Company Adjusted Trial Balance End of the Current Year Debit Credit Cash $1,575 Accounts receivable 2,350 Interest receivable 130 Prepaid insurance 1,750 Long-term notes receivable 3,550 Equipment 16,790 Accumulated depreciation $3,300 Accounts payable 2,700 Dividends payable 675 Accrued expenses payable 4,070 Income taxes payable 1,860 Unearned rent revenue 575 Common Stock (950 shares) 95 Additional paid-in capital 3,770 Retained earnings 1,700 Sales revenue 41,950 Rent revenue 875 Interest revenue 130 Wages expense 21,000 Depreciation expense 2,100 Utilities expense 440 Insurance expense 885 Rent expense 9,300 Income tax expense 1,830 Total $61,700 $61,700 Prepare a statement of stockholders' equity for the current year. Note: Reductions in account balances should be indicated with a minus sign.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $675 were declared at the end of the year, and 500 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $3,300 in cash (for a total at the end of the year of 950 shares). These effects are included below:

	Debit	Credit
Catena’s Marketing Company
Adjusted Trial Balance
End of the Current Year
Cash	$1,575
Accounts receivable	2,350
Interest receivable	130
Prepaid insurance	1,750
Long-term notes receivable	3,550
Equipment	16,790
Accumulated depreciation		$3,300
Accounts payable		2,700
Dividends payable		675
Accrued expenses payable		4,070
Income taxes payable		1,860
Unearned rent revenue		575
Common Stock (950 shares)		95
Additional paid-in capital		3,770
Retained earnings		1,700
Sales revenue		41,950
Rent revenue		875
Interest revenue		130
Wages expense	21,000
Depreciation expense	2,100
Utilities expense	440
Insurance expense	885
Rent expense	9,300
Income tax expense	1,830
Total	$61,700	$61,700

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

Balance, January 1
Dividends declared
Share issuance
Net income
Balance, December 31
CATENA'S MARKETING COMPANY
Statement of Stockholders' Equity
For the current year
Common Additional Paid-
in Capital
Stock
45 $
$
$
50
95
Retained
Earnings
745 $ 2,150
(675)
$
7,400
8,875
Total
Stockholders' Equity
$
2,940
(675)
7,400

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Stockholder's equity is the assets remaining in a business once all liabilities have been settled.

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