Question

Majka Company was started on January 1, Year 1. During Year 1, the company experienced the following three accounting events: (1) earned cash revenues of $33,700, (2) paid cash expenses of $14,900, and (3) paid a $3,200 cash dividend to its stockholders. These were the only events that affected the company during Year 1

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, Year 1, for Majka Company.

Complete this question by entering your answers in the tabs below. Required A Required B Inc Stmt Required B Stmt of Changes Required B Bal Sheet Prepare a balance sheet dated December 31, Year 1, for Majka Company. MAJKA COMPANY Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Stockholders' equity 15,600 Total stockholders' equity Total liabilities and stockholders' equity 15,600 15,600 $

Answer 1

Ans A Event Majka Company Accounting Equation for Year 1 Assets = Liabilities Stockholders' Equity Retained Cash Common Stock Earnings $33,700 $33,700 -$14,900 = -$14,900 -$3,200 = -$3,200 $15,600 = $0 + $0 + $15,600 + + Nm + Ending Balance Ans B 1 Majka Company Income Statement For the Year Ended December 31, Year 1 Revenue $33,700 Less: Expense $14,900 Net Income $18,800 Ans B3 Majka Company Balance Sheet As of December 31, Year 1 Assets Current Assets Cash Total Assets Liabilities Stockholders' Equity Retained Earnings Total Stockholders' Equity Total Liabilities Stockholders' Equity $15,600 $15,600 $15,600 $15,600 $15,600 Ans B 2 Majka Company Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning Common Stock Issue of Stock Ending Common Stock Beginning Retained Earnings Add: Net income for the year $18,800 Less: Dividend paid $3,200 Ending Retained Earnings $15,600 Total Stockholders' Equity $15,600