Question

Catena’s Marketing Company has the following adjusted trial balance at December 31, 2021. No dividends were declared. However, 470 shares issued at the end of the year for $4,700 are included below:

	Debit				Credit
Cash	$	3,200
Accounts receivable		3,900
Interest receivable		270
Prepaid insurance		3,300
Notes receivable (long-term)		4,500
Equipment		17,840
Accumulated depreciation					$	4,700
Accounts payable						4,100
Accrued expenses payable						4,770
Income taxes payable						3,550
Deferred rent revenue						1,350
Contributed capital (940 shares)						5,400
Retained earnings						3,020
Sales revenue						45,300
Interest revenue						270
Rent revenue						1,650
Wages expense		21,200
Depreciation expense		2,650
Utilities expense		550
Insurance expense		1,600
Rent expense		10,700
Income tax expense		4,400
Total	$	74,110			$	74,110

Prepare a classified statement of financial position at December 31, 2021.

Answer 1

Catena's Marketing Company

Classified Balance Sheet

As at December 31, 2021

Particulars	Amount	Amount	Amount
Assets
Current Assets
Cash		3,200
Accounts Receivable		3,900
Interest Receivable		270
Prepaid Insurance		3,300
Total Current Assets			10,670
Non Current Assets
Property, Plant and Equipment
Equipment	17,840
Accumulated Depreciation	(4,700)
Total Property Plant and Equipment		13,140
Other Non Current Assets
Long Term Notes Receivable	4,500
Total Other Non Current Assets		4,500
Total Non Current Assets			17,640
Total Assets			28,310
Liabilities and Stockholders Equity
Liabilities
Current Liabilities
Account Payable		4,100
Accrued Expenses Payable		4,770
Income Taxes Payable		3,550
Deferred Rent Revenue		1,350
Total Current Liabilities			13,770
Total Liabilities			13,770
Stockholders Equity
Contributed Capital		5,400
Retained Earnings		9,140
Total Stockholders Equity			14,540
Total Liabilities and Stockholders Equity			28,310

Notes

Total Assets = Total Current Assets + Total Non Current Assets

Total Liabilities = Total Current Liabilities

Total Liabilities and Stockholders Equity = Total Liabilities + Total Stockholders Equity

Net Income for the Year = Sales Revenue + Interest Revenue + Rent Revenue - Wages Expense - Depreciation Expense - Utilities Expenses - Insurance Expense - Rent Expense - Income Tax Expense

Net Income for the Year = 45,300 + 270 + 1,650 - 21,200 - 2,650 - 550 - 1,600 - 10,700 - 4,400

Net Income for the Year = $ 6,120

Retained Earnings = 3,020 + Net Income for the Year

= 3,020 + 6,120

= $ 9,140