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Majka Company was started on January 1, 2013. During 2013, 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 2013.
Required:
a. Create an accounting equation, and record the effects of each accounting event under the appropriate general ledger account headings.
b. Prepare an income statement and a balance sheet dated December 31, 2013, for Majka Company.
c. Explain why the income statement uses different terminology to date the income statement than is used to date the balance sheet.
The January 1, 2010, general ledger account balances are shown in the following accounting equation. Record the eight events in the appropriate general ledger accounts.
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