Question

Miljka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $31,000, (2) paid cash expenses of $14,000, and (3) paid a $2,300 cash dividend to its stockholders. These were the only events that affected the company during 2018 Required a. Record the effects of each accounting event under the appropriate general ledger account headings. b. 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. ReG A Rego Inc Stmt Req B Chg SE Rego Bal Sheet Record the effects of each accounting event under the appropriate general ledger account headings. (Enter any decreases to account balances with a minus sign.) MLJKA COMPANY Accounting Equation for 2018 Assets Liabilities . Stockholders' Equity Common Retained Earnings Event Ending balance Regine saml>

Answer 1

a.

Event MIJKA COMPANY Accounting equation for 2018 Assets = Liabilities + Stockholders' Equity Cash Common stock + Retained earnings 31,000 31,000 - 14,000 -14,000 -2,300 -2,300 14,700 14,700 1 2 Ending balance

b.

Income statement Revenues Less: Expenses Net income 31,000 -14,000 17,000 Statement of changes in stockholders' equity Beginning common stock Plus: Common stock issued 0 Ending common stock Beginning retained earnings Net income 17000 Less: Dividends -2300 Ending retained earnings Total stockholders' equity 14700 14700 Balance sheet Assets: Cash 14,700 14.700 Total assets Liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 14,700 14.700 14.700