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 CompanyAdjusted Trial BalanceEnd of the Current Year DebitCreditCash$1,575 Accounts receivable2,350 Interest receivable130 Prepaid insurance1,750 Long-term notes receivable3,550 Equipment16,790 Accumulated depreciation $3,300Accounts payable 2,700Dividends payable 675Accrued expenses payable 4,070Income taxes payable 1,860Unearned rent revenue 575Common Stock (950 shares) 95Additional paid-in capital 3,770Retained earnings 1,700Sales revenue 41,950Rent revenue 875Interest revenue 130Wages expense21,000 Depreciation expense2,100 Utilities expense440 Insurance expense885 Rent expense9,300 Income tax expense1,830 Total$61,700$61,700Prepare a statement of stockholders' equity for the current year.Note: Reductions in account balances should be indicated with a minus sign.

Statement of Shareholders Equity shows the how much amount is belonging to owners of the company. It…

Answered: Catena's Marketing Company has the…

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.

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