Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $610 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 $3,040 in cash (for a total at the end of the year of 820 shares). These effects are included below: Catena’s Marketing Company Adjusted Trial Balance End of the Current Year Debit Credit Cash $1,510 Accounts receivable 2,220 Interest receivable 104 Prepaid insurance 1,620 Long-term notes receivable 2,900 Equipment 15,490 Accumulated depreciation $3,040 Accounts payable 2,440 Dividends payable 610 Accrued expenses payable 3,940 Income taxes payable 1,704 Unearned rent revenue 510 Common Stock (820 shares) 82 Additional paid-in capital 3,640 Retained earnings 1,440 Sales revenue 38,960 Rent revenue 810 Interest revenue 104 Wages expense 19,700 Depreciation expense 1,840 Utilities expense 388 Insurance expense 768 Rent expense 9,040 Income tax expense 1,700 Total $57,280 $57,280 Prepare a multistep income statement for the current year. Note: Round your earnings per share to 2 decimal places.

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 $610 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 $3,040 in cash (for a total at the end of the year of 820 shares). These effects are included below:

	Debit	Credit
Catena’s Marketing Company
Adjusted Trial Balance
End of the Current Year
Cash	$1,510
Accounts receivable	2,220
Interest receivable	104
Prepaid insurance	1,620
Long-term notes receivable	2,900
Equipment	15,490
Accumulated depreciation		$3,040
Accounts payable		2,440
Dividends payable		610
Accrued expenses payable		3,940
Income taxes payable		1,704
Unearned rent revenue		510
Common Stock (820 shares)		82
Additional paid-in capital		3,640
Retained earnings		1,440
Sales revenue		38,960
Rent revenue		810
Interest revenue		104
Wages expense	19,700
Depreciation expense	1,840
Utilities expense	388
Insurance expense	768
Rent expense	9,040
Income tax expense	1,700
Total	$57,280	$57,280

Prepare a multistep income statement for the current year.
Note: Round your earnings per share to 2 decimal places.

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