Question

Required information [The following information applies to the questions displayed below.) Milea Inc. experienced the following events in 2018, its first year of operations: 1. Received $14,000 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,150. 4. Collected $37,780 of the accounts receivable. 5. Recorded $9,550 of accrued salaries at the end of the year. 6. Paid a $850 cash dividend to the stockholders. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flow 2018 accounting period. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Req B3 Req B4 Prepare the income statement. MILEA INC.

Answer 1

Amount $ 45,000 Income statement for the year eneded 31st December 2018 - Particulars Amount Service Revenue Less : Expenses Salaries expense 9,550 Utility expense 1,150 Total Expenses Net Income 10,700 34,300 Statement of changes in Stockholders Equity for the year ended 31st December 2018 :- Particulars Amount $ Amount $ Beginning common stock Add: Issue of common stock during the year 14,000 Ending common stock 14,000 Beginning retained earnings Add: Net Income 34,300 Les: Dividends (850) Ending Retained Earnings 33,450 Total Stockholders Equity 47,450

Balance Sheet as at 31st December 2018 :- Particulars Amount $ Amounts Assets :- Current Assets Cash Accounts Receivable Total Assets 49,780 7,220 57,000 Liabilities - Current Liabilities Salaries Payable Total Liabilities 9,550 9,550 Stockholders Equity :- Common stock Retained earnings Total Stockholders Equity Total Liabilities and Stockholders Equity 14,000 33,450 47,450 57,000 Statement of Cash flows for the year ended 31st December 2018 :- Particulars Amount $ Amounts Cashflow from Operating activities - Cash received from customers 37,780 Cash paid for Salaries (1,150) Cashflows from Operating activities 36,630 Cashflow from Investing activities : 14,000 (850) Cashflow from Financing activities : Cash received from issue of common stock Cash paid for dividends Net cashflow from Financing activities Net changes in cash Beginning cash balance Ending cash balance 13,150 49,780 49,780