Question

Required information [The following information applies to the questions displayed below.] Milea Inc. experienced the following events in Year 1, its first year of operations: 1. Received $14,500 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,200. 4. Collected $39,110 of the accounts receivable. 5. Recorded $9,350 of accrued salaries at the end of the year. 6. Paid a $950 cash dividend to the stockholders. b-1. Prepare the income statement. MILEA INC. Income Statement For the Year Ended December 31, Year 1 Expenses Total expenses

B-2. Prepare the statement of changes in stockholders equity

B-3. Prepare the balance sheet

B-4. Prepare the statement of cash dlows for year 1 accounting period.

Answer 1

Answer:

a-1
MILEA INC.
Income Statement
For the Year Ended December 31, Year 1
	Amount($)	Amount($)
Service revenue		45,000
Expenses
Utility expense	1,200
Salaries expense	9,350
Total expenses		10,550
Net income		34,450
b-2.
			MILEA INC.
Statement of Changes in Stockholders' Equity
For the Year Ended December 31, Year 1
	Amount($)	Amount($)
Beginning common stock	-
Common stock issued	14,500
Ending common stock		14,500
Beginning retained earnings	-
Net income	34,450
Dividends	-950
Ending retained earnings		33,500
Total stockholders' equity		48,000
b-3.
			MILEA INC.
Balance Sheet
As of December 31, Year 1
	Amount($)	Amount($)
Assets
Cash(39110+14500-950-1200)	51,460
Accounts receivable(45000-39110)	5,890
Total assets		57,350
Liabilities
Salaries payable	9,350
Total liabilities		9,350
Stockholders' Equity
Common stock	14,500
Retained earnings	33,500
Total stockholders' equity		48,000
Total liabilities and stockholders' equity		57,350
b-4.
			MILEA INC.
Statement of Cash Flows
For the Year Ended December 31, Year 1
	Amount($)	Amount($)
Cash flow from operating activities
Cash received from customers	39,110
Cash paid for utility expense	-1,200
Net cash flow from operating activities		37,910
Cash flow from investing activities		-
Cash flow from financing activities
Issuance of common stock	14,500
Cash paid for dividends	-950
Net cash flow from financing		13,550
Net change in cash		51,460
Beginning cash balance		-
Ending cash balance		51,460