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 $16,500 cash from the issue of common stock.
2. Performed services on account for $45,000.
3. Paid the utility expense of $1,300.
4. Collected $34,350 of the accounts receivable.
5. Recorded $5,650 of accrued salaries at the end of the year.
6. Paid a $1,050 cash dividend to the stockholders.

Required a. Record the events in general ledger accounts under an accounting equation. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. The first transaction has been recorded as an example. (Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings". Enter any decreases to account balances with a minus sign.) MILEA, INC General Ledger Accounts For the Year Ended December 31, Year 1 Assets Liabilities Stockholders' Equity Accounts Titles for Retained Earnings Event Accounts Receivable Salaries Payable Retained Earnin Comm on Cash Stock 16,500 16,500 2. 4 6 Totals

Answer 1

	Assets		=	Liabilities	+	Stockholders Equity		Account title for retained earnings
Event	Cash	Accounts Receivable	=	Salaries Payable		Common Stock	Retained Earnings
1	16,500					16,500
2		45,000					45,000	Service revenue
3	(1,300)						(1,300)	Utility Expense
4	34,350	(34,350)
5				5,650			(5,650)	Salaries expense
6	(1,050)						(1,050)	Dividend paid
Total	48,500	10,650		5,650		16,500	37,000