Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $660 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 $3,240 in cash (for a total at the end of the year of 920 shares). These effects are included below:Catena’s Marketing CompanyAdjusted Trial BalanceEnd of the Current Year DebitCreditCash$1,560 Accounts receivable2,320 Interest receivable124 Prepaid insurance1,720 Long-term notes receivable3,400 Equipment16,490 Accumulated depreciation $3,240Accounts payable 2,640Dividends payable 660Accrued expenses payable 4,040Income taxes payable 1,824Unearned rent revenue 560Common Stock (920 shares) 92Additional paid-in capital 3,740Retained earnings 1,640Sales revenue 41,260Rent revenue 860Interest revenue 124Wages expense20,700 Depreciation expense2,040 Utilities expense428 Insurance expense858 Rent expense9,240 Income tax expense1,800 Total$60,680$60,680Prepare the closing entry at the end of the current year.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet1Record the closing entry at the end of the current year.Note: Enter debits before credits.Transaction1Record entryGeneral JournalClear entryDebitCreditView general journal

Closing entries are the types of entries that are made to permanently close temporary accounts.…

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 $660 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 $3,240 in cash (for a total at the end of the year of 920 shares). These effects are included below:

	Debit	Credit
Catena’s Marketing Company
Adjusted Trial Balance
End of the Current Year
Cash	$1,560
Accounts receivable	2,320
Interest receivable	124
Prepaid insurance	1,720
Long-term notes receivable	3,400
Equipment	16,490
Accumulated depreciation		$3,240
Accounts payable		2,640
Dividends payable		660
Accrued expenses payable		4,040
Income taxes payable		1,824
Unearned rent revenue		560
Common Stock (920 shares)		92
Additional paid-in capital		3,740
Retained earnings		1,640
Sales revenue		41,260
Rent revenue		860
Interest revenue		124
Wages expense	20,700
Depreciation expense	2,040
Utilities expense	428
Insurance expense	858
Rent expense	9,240
Income tax expense	1,800
Total	$60,680	$60,680

Prepare the closing entry at the end of the current year.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Journal entry worksheet
1
Record the closing entry at the end of the current year.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal

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