Mijka Company was started on January 1, 2018. During 2018, the company experienc
ID: 2331548 • Letter: M
Question
Mijka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $31,600, (2) paid cash expenses of $14,200, and (3) paid a $2,500 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.
Complete this question by entering your answers in the tabs below.
Req A
Prepare an income statement dated December 31, 2018, for Mijka Company.
Prepare a statement of changes in stockholders’ equity dated December 31, 2018, for Mijka Company.
Prepare a balance sheet dated December 31, 2018, for Mijka Company.
Typewritten answers, please, no handwritten answers. Thank you.
Explanation / Answer
Accounting Equation Event Assets = Liabilities + Stockholder's Equity Cash = + Common + Retained Stock. Earnings 1 31,600 = 31,600 2 -14,200 = -14,200 3 -2,500 = -2,500 End bal 14,900 14,900 Income Statement Revenue 31,600 less Expenses 14,200 net income 17,400 Statement of Changes in Stockholder's Equity Beginning Common Stock 0 Plus:Common stock issued 0 Ending Common stock 0 Beginning Retained earnings 0 Add:Net income 17,400 less:dividends 2,500 Ending retained earnings 14,900 Total Stockholder's Equity 14,900 Balance Sheet Assets: Cash 14,900 Total Assets 14,900 Liabilties Stockholders Equity common Stock 0 Retained earnings 14,900 Total stockholders Equity 14,900 Total liabilities & Stockholders Equity 14,900