Mika Compery was started on January) cash revenues of $31.000 the only events that affected the compary during t During eart the compery experienced the tolong three accounting event paid cash expenses of $4,000, and pada 12.300 cash didend to appropriate genere per accode headings statement statement of changes in stockholders equity, and a belence sheet died December 31, 1 Record the effects of each accounting e & Propers Ma Coroary Ow changes 247 ahade ty datad December 31, er for Comp 3
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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Required
a Record the effects of each accounting event under the appropriate general ledger account headings
b. Prepare an income statement, statement of changes in stockholders' equity, and a balance sheet dated December 31, Year 1, for
Mika Company
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Reg Inc Re Son of Real
Sent Changes Sheet
Prepare an income statement dated December 31, Year 1, for Hyka Company
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MUKA COMPANY
Income Statement
For the Year Ended December 31, Year 1
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Mika Company was started on January 1, Year 1. During Year 1, the company experienced the following three accounting events
earned cash revenues of $31.000, (2) paid cash expenses of $14,000, and paid a $2.300 cash dividend to its stockholders. These
were the only events that affected the company during Year 1
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Plus Common stock d
Ending common stock
gained eangs
Ending retained earings
Required
a Record the effects of each accounting event under the appropriate general ledger account headings
b. Prepare an income statement, statement of changes in stockholders equity, and a balance sheet dated December 31, Year 1 for
Mika Company.
Complete this question by entering your answers in the tabs below.
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Changes
Prepare a statement of changes in stockholders equity dated December 31, Year 1, for Mika Company
MUKA COMPANY
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Year Ended December 21, Year
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