Question

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.

Answer 1

Answer:

Explanation:

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