Question

Majka Company was started on January 1, Year 1. During Year 1, the company earned cash revenues of $31600, (2) paid cash expenses of $14,200, and (3) paid a $2,500 cash dividend to ts stockholders. These experienced the following three accounting events:(1) 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 B Required B Ba Stmt of Changes Stmt 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.) МАЈКА С PANY

Answer 1

Answers

• Requirement A

	Assets	Liabilities	Common	Retained
Event	Cash		Stock	Earnings
1	$31,600	$0	$0	$31,600
2	($14,200)	$0	$0	($14,200)
3	($2,500)	$0	$0	($2,500)
Ending balance	$14,900	$0	$0	$14,900

• Requirement B

Income Statement

Revenues	$31,600
Expenses	$14,200
Net Income	$17,400

• Requirement C

Beginning common stock	$0
Issued during the period	$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

• Requirement D

Assets
Cash		$14,900
Total Assets		$14,900
Liabilities		$0
Stockholder's Equity
Retained earnings (and common stock)	$14,900
Total Stockholder's Equity		$14,900
Total Liabilities & Stockholders' Equity		$14,900