Question

Check my wo 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 $12,500 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,000. 4. Collected $35,670 of the accounts receivable. 5. Recorded $8,750 of accrued salaries at the end of the year. 6. Paid a $1,350 cash dividend to the stockholders. equired . 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. (If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require input. Enter any decreases to account balances with a minus sign.)

Answer 1

Event Assets Accounts Receivable Cash $ 12,500 1 Liabilities Stockholder's Equity Accounts Title for retained earnings Salaries payable + Common stock Retained Earnings $ 12,500 $ 45,000 Service Revenue $ -1,000 Utility Expenses $ 45,000 + 2 3 4 $ = + -1,000 35,670 $ $ -35,670 + 5 $ 8.750 + $ -8,750 Salaries Expenses -1,350 Dividend 6 $ -1,350 + $