Question

Geciarea at the end of the year, and b10 Botional shares of common StoCK ( 10 par value per snarej were issued at the end of the year for $2.440 in cash for a total at the end of the year of 800 shares). These effects are included below. Catena's Marketing Company Adjusted Trial Balance End of the current Year 3.57 points Debit Credit $ 1,660 Seed 1,770 2,950 15,600 2.39 3,770 2,58e Accounts receivable Interest receivable Prepaid insurance Long-ter notes receivable Equipment Accumulated depreciation Accounts payable Dividends payable Accrued expenses payable Income taxes payable Unearned rent revenue Common Stock (see shares) Additional paid in Capital Retained earnings Sales revenue Interest revenue Rent revenue Wages expense Depreciation expense Utilities expense Insurance expense Rent expense Income tax expense 3,420 References 37, 15e 18, 1,500 9. See 2.40 $ 58,550 $ 58,50 Prepare a statement of stockholders' equity for the current year. (Reductions in account balances should be indicated with a minus sign.) CATENA'S MARKETING COMPANY Statement of Stockholders' Equity Common Stock Additional Paid in Capital Retained Ear Stockholders Equity Balance, January 1 Balance December 31

Answer 1

Answer:

CATENA'S MARKETING COMPANY
Statement of Stockholders' Equity
For the end of the current year
	Common Stock	Additional Paid-in Capital	Retained Earnings	Total Stockholders' Equity
Balance, January 1	$19	$1,041	$5,060	$6,120
Issuance of additional stock	$61	$2,379		$2,440
Net income			$3,970	$3,970
Dividends			($600)	($600)
Balance, December 31	$80	$3,420	$8,430	$11,930

Calculations:

1	Common stock, Dec 31 [800 shares x $0.10]	$80
	Issuance of additional stock [610 shares x $0.10]	($61)
	Common stock, Jan 1	$19
2	Additional Paid-in capital, Dec 31	$3,420
	New issue [$2,440 - $61]	($2,379)
	Additional Paid-in capital, Jan 1	$1,041
3	Retained earnings, balance in trial balance	$4,460
	Add: Dividends	$600
	Retained earnings, Jan 1	$5,060
4	Income Statement
	Revenues:
	Sales revenue		$37,150
	Interest revenue		$150
	Rent revenue		$640
	Total revenues		$37,940
	Expenses:
	Wages expense	$18,800
	Depreciation expense	$1,800
	Utilities expense	$350
	Insurance expense	$780
	Rent expense	$9,500
	Income tax expense	$2,740
	Total Expenses		$33,970
	Net income		$3,970