Question

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 690 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,760 in cash (for a total at the end of the year of 810 shares). These effects are included below: Catena’s Marketing Company Adjusted Trial Balance End of the Current Year Debit Credit Cash $ 1,530 Accounts receivable 2,230 Interest receivable 220 Prepaid insurance 1,710 Long-term notes receivable 2,940 Equipment 16,700 Accumulated depreciation $ 2,870 Accounts payable 2,310 Dividends payable 650 Accrued expenses payable 3,750 Income taxes payable 2,620 Unearned rent revenue 330 Common Stock (810 shares) 81 Additional paid-in capital 3,559 Retained earnings 4,530 Sales revenue 36,850 Interest revenue 110 Rent revenue 690 Wages expense 18,300 Depreciation expense 1,720 Utilities expense 330 Insurance expense 710 Rent expense 9,200 Income tax expense 2,760 Total $ 58,350 $ 58,350 Prepare a statement of stockholders' equity for the current year. (Reductions in account balances should be indicated with a minus sign.)

Statement of Stockholders equity

	Common stock	Additional paid-in capital	Retained earnings	Total of Stockholders Equity
Balance, January 1
Dividends Declared
Net Income
Shares issuance

Balance, December 31

Please show how to get the numbers.

Answer 1

		Statement of Stockholder’s Equity
				Common stock	Additional paid-in capital	Retained earnings	Total of Stockholders Equity
	Balance, January 1		(Note:1)	12	868	550	1430
	Dividends declared					-650	-650
	Net income		(Note:2)			4630	4630
	Shares issuance			69	2691		2760
				(690*0.10)	(2760-69)
	Balance, December 31			81	3559	4530	8170
	Note:1
	Balance, January 1:
				Common stock	Additional paid-in capital	Retained earnings	Total of Stockholders Equity
	Balance, December 31			81	3559	4530	8170
	Add:Dividends declared					650	650
				81	3559	5180	8820
	Less:
	Net income					4630	4630
	Shares issuance			69	2691		2760
				(690*0.10)	(2760-69)
	Balance, January 1			12	868	550	1430
	Note:2
	Net income:
					$	$
	Revenues:
	Sales revenue				36850
	Interest revenue				110
	Rent revenue				690
	Total revenues					37650
	Less:Expenses
	Wages expense				18300
	Depreciation expense				1720
	Utilities expense				330
	Insurance expense				710
	Rent expense				9200
	Income tax expense				2760	33020
	Net income					4630