Question

Miljka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $32,500, (2) paid cash expenses of $14,500, and (3) paid a $2,800 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 Mljka Company Complete this question by entering your answers in the tabs below. Reg A Reg B Inc Stmt Reg B Bal Req B Chg SE Record the effects of each accounting event under the appropriate general ledger account headings. (Enter any decreases to account balances with a minus sign.) MIJKA COMPANY Accounting Equation for 2018 Assets Liabilities - Stockholders' Equity Cash - Common Retained stock Earnings Event Ending balance 0 Regine Stat >

Answer 1

A.

MIJKA COMPANY Accounting equation for 2018 Event Assets = Liabilities + Stockholders' Equity Cash Common stock + Retained earnings 1 32,500 32,500 2 -14500 -14500 3 -2800 -2800 Ending balance 15,200 15,200

B.

Income statement Revenues Less: Expenses Net income 32,500 -14,500 18,000

Statement of changes in stockholders' equity Beginning common stock Plus: Common stock issued Ending common stock Beginning retained earnings Net income 18000 Less: Dividends -2800 Ending retained earnings 15200 Total stockholders' equity 15200

Balance sheet Assets: Cash 15,200 15,200 Total assets Liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 15,200 15,200 15,200