Question

[The following information applies to the questions displayed below.]

Milea Inc. experienced the following events in 2018, 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 $1,500.
4. Collected $30,210 of the accounts receivable.
5. Recorded $5,600 of accrued salaries at the end of the year.
6. Paid a $1,350 cash dividend to the stockholders.
   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 $16,500 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,500. 4. Collected $30,210 of the accounts receivable. 5. Recorded $5,600 of accrued salaries at the end of the year. 6. Paid a $1,350 cash dividend to the stockholders.
   

Answer 1

	MILEA INC
	Income Statement
	For the year ended December 31, 2018
	Particulars	Amount $
	Service revenue	45,000
	Expenses
	Salaries expenses	5,600
	Utilities expenses	1,500
	Total Expenses	7,100
	Net Income for the current year	37,900
	MILEA INC
	Statement of changes in stockholder's Equity
	For the year ended December 31, 2018
	Particulars	Amount $
	Beginning common stock	16,500
	Ending common stock
	Beginning retained earning
	Add:- Profit for the current year	37,900
	Less:- Cash dividend paid	1,350
	Ending retained earning	36,550
	Total stockholders equity	53,050
	MILEA INC
	Balance Sheet
	As of December 31, 2018
	Assets
	Cash	43,860
	Receivable ( 45,000-30,210)	14,790
	Total assets	58,650
	Liabilities
	Accrued salaries	5,600
	Total Liabilities	5,600
	Stockholders Equity
	Common stock	16,500
	Retained earning	36,550
	Total Stockholders Equity	53,050
	Total Liabilities and Stockholders Equity	58,650	-
	MILEA INC
	Statement of cash flow
	For the year ended December 31, 2018
	Cash flow from operating activities
	Net profit before taxes	37,900
	Changes in working capital
	Changes in receivable	(14,790)
	Changes in accrued salaries	5,600
	Net cash flow from operating activities	28,710
	Cash flow from investing activities
	Cash flow from financing activities
	Issue of common stock	16,500
	Dividend paid	(1,350)
	Net cash flow from financing activities	15,150
	Net changes in cash	43,860
	Ending cash balance	43,860
	Cash Accounts
	Particulars	Debit $	Particulars	Credit$
	To common stock	16,500	By Utility	1,500
	To receivable	30,210	By cash dividend	1,350
			By closing balance	43,860
	Total	46,710	Total	46,710