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Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $630 were declared at the end
Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $630 were declared at the end of the year, and 600 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,400 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 Debit Credit Cash $ 1,560 Accounts receivable 2,370 Interest receivable 260 Prepaid insurance 1,620 Long-term notes receivable 2,890 Equipment 16,300 Accumulated depreciation 2,920 Accounts payable 2,330 Dividends payable Accrued expenses payable Income taxes payable 2,540 Unearned rent revenue 410 Common Stock (830 shares) Additional paid-in capital Retained earnings Sales revenue 37,550 Interest revenue 180 Rent revenue 710 Wages expense 18,100 Depreciation expense 1,780 Utilities expense 350 Insurance expense 710 Rent expense 9,500 Income tax expense 2,770 Total $ 58,210 $ 58,210 83 3,577 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 For the current year Common Stock Additional Paid-in Capital Retained Earnings Total Stockholders' Equity $ $ 4,010 23 60 2,400 Balance, January 1 Share issuance Dividends declared Net income (630) (630) Balance, December 31 $ 83 $ 3,577
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