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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