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 a balance sheet

Answer 1

To create a balance sheet for Mijka Company, we calculated the assets ($13,900 cash), liabilities (none reported), and stockholders' equity, which consists of common stock and retained earnings (determined by cash after expenses and dividends). The lack of common stock value prevents the exact calculation of stockholders' equity.

Step-by-step explanation:

To create a balance sheet for Mijka Company we need to calculate the company's assets, liabilities, and equity as of December 31, 2018. From the given information, Mijka Company has earned cash revenues of $28,600, paid cash expenses of $13,200, and paid a cash dividend of $1,500. There were no other events that affected the company's balance sheet during 2018.

Here is the balance sheet as of December 31, 2018:

as of December 31, 2018

• Assets:
• Liabilities:
• Stockholders' Equity:
  

Since the value of the common stock is not provided, we cannot specify the exact values under stockholders' equity. Typically, the stockholders' equity section includes the common stock (beginning balance plus any new stock issued) and retained earnings (beginning balance plus net income minus dividends). However, in this scenario, we've assumed that the entire cash balance after expenses and dividends is retained earnings.