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

	MIJKA COMPANY Accounting Equation for 2018 Event Assets = Liabilities + Stockholders’ Equity Cash = + Common Stock + Retained Earnings 1. = + + 2. = + + 3. = + + Ending balance

Prepare an income statement dated December 31, 2018, for Mijka Company.

	MIJKA COMPANY Income Statement For the Year Ended December 31, 2018

Prepare a statement of changes in stockholders’ equity dated December 31, 2018, for Mijka Company.

	MIJKA COMPANY Statement of Changes in Stockholders’ Equity For the Year Ended December 31, 2018 Beginning common stock Plus: Common stock issued Ending common stock Beginning retained earnings Ending retained earnings Total stockholders’ equity

Prepare a balance sheet dated December 31, 2018, for Mijka Company.

	MIJKA COMPANY Balance Sheet As of December 31, 2018 Assets Total assets Liabilities Stockholders’ equity Common stock Total stockholders’ equity Total liabilities and stockholders’ equity

Typewritten answers, please, no handwritten answers. Thank you.

Answer 1

		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