Question

Mijka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $28,600, (2) paid cash expenses of $13,200, and (3) paid a $1,500 cash dividend to its stockholders. These were the only events that affected the company during 2018.

create an income statement

Answer 1

To create an income statement for Mijka Company for the year 2018, subtract the expenses from the revenues.

Step-by-step explanation:

To create an income statement for Mijka Company for the year 2018, we need to calculate the net income by subtracting the expenses from the revenues. In this case, the company earned cash revenues of $28,600 and paid cash expenses of $13,200. The net income can be calculated as follows:

Net Income = Revenues - Expenses

Net Income = $28,600 - $13,200

Net Income = $15,400

So, the income statement for Mijka Company for the year 2018 would show a net income of $15,400.