Mijka Company was started on January 1, 2018. During 2018, the company experienc

Question

Mijka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $34,600, (2) paid cash expenses of $15,200, and (3) paid a $3,500 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.

Explanation / Answer

Accounting equation

Income statement

Statement of changes in stockholders’ equity

Balance sheet

Event Assets = Liabilities + Stockholder's equity Cash = Common
stock + Retained earnings 1. Cash revenues 34600 NA NA 34600 2. Paid expenses (15200) NA NA (15200) 3. Paid dividend (3500) NA NA (3500) Ending balance 15900 = 0 + 0 + 15900

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---