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ID: 2612048 • Letter: H
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Hiu Welcome, Lily Blackboa SIMne's- Keep IT SIMple!Sign out O1 ezto.mheducation.com/hm.tpx Majka Company was started on January 1, 2016. During 2016, the company experienced the following three accounting events: (1) earned cash revenues of $28,600, (2) paid cash expenses of $13,200, and paid a $1,500 cash dividend to its stockholders. These were the only events that affected the company during 2016. Required a. Record the effects of each accounting event under the appropriate general ledger account headings. Enter any decreases to account balances with a minus sign.) MAJKA COMPANY Accounting Equation for 2016 Assets LiabilitiesStockholders' Equity Retained Common Earnings Event Cash Stock 28,6001 = 1,500+ 13,200+ 2. 3. | || 1 Ending balance 28,600 1,500 13,200 b. Prepare an income statement, statement of changes in stockholders equity, and a balance sheet da December 31, 2016, for Majka Company MAJKA COMPANY Income Statement For the Year Ended December 31, 2016 Revenue pense letincome 1.500 $ ,500Explanation / Answer
a. Recoording Effects of each accounting events
Event
Assets
Liabilities
Stockholder’s Equity
Cash
Common Stock
Retained Earnings
1
28,600
28,600
2
-13,200
-13,200
3
-1,500
-1,500
Ending Balance
13,900
13,900
b. Income Statement
Particulars
Amount
Revenue
28,600
Less: Expenses
13,200
Income
15,400
c. Changes in Stockholder’s Equity
Particulars
Amount
Amount
Beginning Stock
32,000
Plus: Issued Stock
12,000
Ending Stock
44,000
Beginning Retained Earnings
0
Plus: Net Income
15,400
Less: Dividends Paid
1,500
Ending Retained Earnings
13,900
Total Stockholder’s Equity
57,900
NOTE: Common stock is assumed per thousand as given in pic.
D. Balance Sheet
Particulars
Amount
Assets
Cash (Inclusive of common stock) (13,900 + 44,000)
57,900
Retained Earnings
0
Total Assets
57,900
Liabilities
Stockholder’s Equity
Common Stock
44,000
Retained Earnings
13,900
Total Liabilities & Stockholder’s equity
57,900
Event
Assets
Liabilities
Stockholder’s Equity
Cash
Common Stock
Retained Earnings
1
28,600
28,600
2
-13,200
-13,200
3
-1,500
-1,500
Ending Balance
13,900
13,900
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