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 $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 salariés at the end of the year. 6. Paid a $1,350 cash dividend to the stockholders.

Answer 1

Statement of Changes in Stockholders' Equity
For the Year Ended December 31, Year 1
	Amount($)	Amount($)
Beginning common stock	-
Common stock issued	12,500
Ending common stock		12,500
Beginning retained earnings	-
Net income(45000-1000-8750)	35250
Dividends	-1350
Ending retained earnings		33,900
Total stockholders' equity		46,400
2
MILEA INC.
Balance Sheet
As of December 31, Year 1
	Amount($)	Amount($)
Assets
Cash(35670+12500-1350-1000)	45820
Accounts receivable(45000-35670)	9,330
Total assets		55,150
Liabilities
Salaries payable	8,750
Total liabilities		8,750
Stockholders' Equity
Common stock	12,500
Retained earnings	33,900
Total stockholders' equity		46,400
Total liabilities and stockholders' equity		55150
3
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	35,670
Cash paid for utility expense	-1,000
Net cash flow from operating activities		34,670
Cash flow from investing activities		-
Cash flow from financing activities
Issuance of common stock	12,500
Cash paid for dividends	-1350
Net cash flow from financing		11,150
Net change in cash		45,820
Beginning cash balance		-
Ending cash balance		45,820