Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $650 were declared at the

image text in transcribed

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $650 were declared at the end of the year, and 590 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,360 in cash (for a total at the end of the year of 830 shares). These effects are included below: Catena's Marketing Company Adjusted Trial Balance End of the Current Year Cash Debit $ 1,610 Credit Accounts receivable 2,370 Interest receivable 220 Prepaid insurance 1,670 Long-term notes receivable 2,980 Equipment 15,400 Accumulated depreciation Accounts payable $ 2,880 2,290 Dividends payable 650 Accrued expenses payable Income taxes payable Unearned rent revenue Common Stock (830 shares) Additional paid-in capital Retained earnings Sales revenue 3,870 2,610 410 83 3,587 3,720 37,150 Interest revenue 130 Rent revenue 750 Wages expense 18,500 Depreciation expense 1,730 Utilities expense 370 Insurance expense 710 Rent expense 9,800 Income tax expense Total 2,770 $58,130 $ 58 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 Earnings Total Stockholders' Equity Balance, January 1 $ 24 Share issuance 59 Net income Dividends declared Balance, December 31 $ 83

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge

11th Edition

1264229739, 9781264229734

More Books

Students also viewed these Accounting questions

Question

What is an arbitrage-free interest-rate model? AppendixLO1

Answered: 1 week ago