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7 July, 22:43

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.

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  1. 7 July, 23:12
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    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

    Income statement

    Revenue $34600

    Expense (15200)

    Net income $19400

    Statement of changes in stockholders' equity

    Common stock $0

    Retained earnings:

    Net income $19400

    Less: dividends (3500)

    Total stockholder's equity $15900

    Balance sheet

    Assets:

    Cash $15900

    Liabilities $0

    Stockholder's equity:

    Common stock 0

    Retained earnings 15900

    Total stockholder's equity $15900

    Total liabilities and stockholder's equity $15900
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