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 $13,000 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,050. 4. Collected $33,100 of the accounts receivable. 5. Recorded $9,200 of accrued salaries at the end of the year. 6. Paid a $1,050 cash dividend to the stockholders.

Answer 1

First one:

a Event No. 1 $ Assets Accounts Cash Receivable 13,000 $ 45,000 -1,050 33,100 $ -33,100 = For Accounting Year 1 Balance Sheet Income Statement Liabilities Equity Statement of Cash Accounts Salaries Common Retained Flow Payable Payable Stock Earnings Revenue Expenses = Net Income $ 13,000 $ $ $ 13,000 FA $ 45,000 $ 45,000 = $ 45,000 $ $ -1,050 $ 1,050 $ -1,050 $ -1,050 OA $ = $ $ 33,100 OA $ 9,200 $ 9,200 $ 9,200 = $ -9,200 $ $ -1,050 = $ $ -1,050 FA $ $ 9,200 $ 13,000 $ 33,700 $ 45,000 $ 10,250 = $ 34,750 $ 44,000 NC 2 = 3 $ $ 4 5 6 Total $ $ -1,050 44,000 $ 11,900 =

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Second one:

a Lewis and Harper For Accounting Year 1 Balance Sheet Income Statement Assets Liabilities Equity Statement of Cash Event Accounts Accounts Salaries Retained Flow No. Cash Receivable Payable Payable Earnings Revenue Expenses = Net Income 1 $ 1,04,500 $ 1,04,500 $1,04,500 $ 1,04,500 2 $ 57,000 $ 57,000 $ 57,000 = $ 57,000 $ 57,000 OA 3 $ 62,000 $ -62,000 $ 62,000 $ -62,000 $ 4 $ -23,500 $ -23,500 $ 23,500 = $ -23,500 $ -23,500 OA 5 $ 71,000 $ -71,000 = $ = $ $ 71,000 OA 6 $ -26,000 $ -26,000 $ = $ $ -26,000 OA 7 $ -7,000 $ -7,000 = $ $ -7,000 FA 8 $ 5,400 $ -5,400 $ 5,400 = $ -5,400 $ Total $ 71,500 $ 33,500 = $ 36,000 $5,400 $ 63,600 $1,61,500 $ 90,900 $ 70,600 $ 71,500 NC = = b C $ 1,05,000 $ 33,500 $ 36,000 d f f $ $ 70,600 78,500 8

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