Mijka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $32,800, (2) paid cash expenses of $14,600, and (3) paid a $2,900 cash dividend to its stockholders. These were the only events that affected the company during 2018. Required:

Record the effects of each accounting event under the appropriate general ledger account headings. Prepare an income statement, statement of changes in stockholders' equity, and a balance sheet dated December 31, 2018, for Mijka Company.

Question

Business

Lucian Branch

27 November, 10:20

Mijka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $32,800, (2) paid cash expenses of $14,600, and (3) paid a $2,900 cash dividend to its stockholders. These were the only events that affected the company during 2018. Required:

Record the effects of each accounting event under the appropriate general ledger account headings. Prepare an income statement, statement of changes in stockholders' equity, and a balance sheet dated December 31, 2018, for Mijka Company.

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Hallie Boyle · Answer 1

Income Statement

$

Revenue 32,800

Expenses (14,600)

Profit 18,200

Statement of changes in stockholders' equity

Retained Earnings:

Profit for the year 18,200

Cash dividend paid (2,900)

Retained earnings as at 31/12/18 15,300

Balance sheet

Current Asset:

Cash Balance (32,800-2900) 29,900

Stockholders' Equity:

Retained earnings 15,300