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 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). These effects are included below:

Catena’s Marketing Company
Adjusted Trial Balance
End of the Current Year
	Debit				Credit
Cash	$	1,550
Accounts receivable		2,350
Interest receivable		220
Prepaid insurance		1,720
Long-term notes receivable		2,910
Equipment		15,500
Accumulated depreciation				$	2,970
Accounts payable					2,320
Dividends payable					650
Accrued expenses payable					3,800
Income taxes payable					2,660
Unearned rent revenue					390
Common Stock (840 shares)					84
Additional paid-in capital					3,456
Retained earnings					3,940
Sales revenue					37,450
Interest revenue					160
Rent revenue					630
Wages expense		18,900
Depreciation expense		1,770
Utilities expense		340
Insurance expense		730
Rent expense		9,800
Income tax expense		2,720
Total	$	58,510		$	58,510

Prepare a multistep income statement for the current year. (Round your earnings per share to 2 decimal places. )

Answer 1