Hiu Welcome Lily Blackboa SIMnes Keep IT SIMpleSign out O1 e

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 $ ,500

Solution

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