Concept explainers
Exercise 1-15 Preparing an income statement and a
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.
Required
a. Create an
b. Prepare an income statement, statement of changes in stockholders’ equity, and a balance sheet dated December 31, 2018, for Mijka Company.
c. Explain why the income statement uses different terminology to date the income statement than is used to date the balance sheet.
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GEN COMBO LOOSELEAF SURVEY OF ACCOUNTING; CONNECT ACCESS CARD
- Financial statements Seth Feye established Reliance Financial Services on July 1, 2016. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for July follow: Instructions 1. Prepare an income statement for the month ended July 31, 2016. 2. Prepare a retained earnings statement for the month ended July 31, 2016. 3. Prepare a balance sheet as of July 31, 2016. 4. (Optional) Prepare a statement of cash flows for the month ending July 31, 2016.arrow_forwardFinancial statements Jose Loder established Bronco Consulting on August 1, 2016. The effect of each transaction and the balances after each transaction for August follow: Instructions 1. Prepare an income statement for the month ended August 31, 2016. 2. Prepare a retained earnings statement for the month ended August 31, 2016. 3. Prepare a balance sheet as of August 31, 2016. 4. (Optional) Prepare a statement of cash flows for the month ending August 31, 2016.arrow_forwardFinancial statements Jose Loder established Bronco Consulting on August 1, 2018. The effect of each transaction and the balances after each transaction for August follow: Instructions 1. Prepare an income statement for the month ended August 31, 2018. 2. Prepare a retained earnings statement for the month ended August 31, 2018. 3. Prepare a balance sheet as of August 31, 2018. 4. (Optional) Prepare a statement of cash flows for the month ending August 31, 2018.arrow_forward
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