Question
Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $620 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 $620 were declared at the end of the year, and 550 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,200 in cash (for a total at the end of the year of 840 shares). Beginning balances for stockholders' equity accounts are: Common stock, $29; Additional paid-in capital, $1,451; and Retained earnings, $3,330. These effects are included below:
Catenas Marketing Company | ||
Adjusted Trial Balance | ||
End of the Current Year | ||
Debit | Credit | |
---|---|---|
Cash | $1,580 | |
Accounts receivable | 2,270 | |
Interest receivable | 160 | |
Prepaid insurance | 1,660 | |
Long-term notes receivable | 2,890 | |
Equipment | 16,200 | |
Accumulated depreciation | $2,940 | |
Accounts payable | 2,370 | |
Dividends payable | 620 | |
Accrued expenses payable | 3,780 | |
Income taxes payable | 1,722 | |
Unearned rent revenue | 460 | |
Common Stock (840 shares) | 84 | |
Additional paid-in capital | 3,596 | |
Retained earnings | 2,710 | |
Sales revenue | 37,350 | |
Rent revenue | 720 | |
Interest revenue | 150 | |
Wages expense | 18,100 | |
Depreciation expense | 1,710 | |
Utilities expense | 400 | |
Insurance expense | 710 | |
Rent expense | 9,100 | |
Income tax expense | 1,722 | |
Total | $56,502 | $56,502 |
Prepare a statement of stockholders' equity for the current year. Note: Reductions in account balances should be indicated with a minus sign.
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