Question

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $695 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 $3,380 in cash (for a total at the end of the year of 990 shares). Beginning balances for stockholders' equity accounts are: Common stock, $49; Additional paid-in capital, $765; and Retained earnings, $2,190. These effects are included below:

Catenas Marketing Company
Adjusted Trial Balance
End of the Current Year
	Debit	Credit
Cash	$1,595
Accounts receivable	2,390
Interest receivable	138
Prepaid insurance	1,790
Long-term notes receivable	3,750
Equipment	17,190
Accumulated depreciation		$3,380
Accounts payable		2,780
Dividends payable		695
Accrued expenses payable		4,110
Income taxes payable		1,908
Unearned rent revenue		595
Common Stock (990 shares)		99
Additional paid-in capital		4,095
Retained earnings		1,495
Sales revenue		42,870
Rent revenue		895
Interest revenue		138
Wages expense	21,400
Depreciation expense	2,180
Utilities expense	456
Insurance expense	921
Rent expense	9,380
Income tax expense	1,870
Total	$63,060	$63,060

Prepare a statement of stockholders' equity for the current year. Note: Reductions in account balances should be indicated with a minus sign.

CATENA'S MARKETING COMPANY Statement of Stockholders' Equity