Mijka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $28,900, (2) paid cash expenses of $13,300, and (3) paid a $1,600 cash dividend to its stockholders. These were the only events that affected the company during 2018.

Question

Business

Tanya Maynard

4 January, 03:55

Mijka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $28,900, (2) paid cash expenses of $13,300, and (3) paid a $1,600 cash dividend to its stockholders. These were the only events that affected the company during 2018.

+2

Answers (1)

Know the Answer?

Josiah Wright · Answer 1

net income 15,600

ending retained earnings. 14,000

Explanation:

retained earnings for the end of the year:

first, we solve for the net income, which is the difference between our revenues and expenses.

net income

28,900 revenue

(13,300) expenses

15,600 net income

(1,600) cash dividends

14,000 ending retained earnings.

Then, we subtract the cash dividends to get the amount of ending retained earnings.