All one homework question, please help Required information (The following infor

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All one homework question, please help

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 $20,000 cash from the issue of common stock. 2. Performed services on account for $56,000 3. Paid the utility expense of $2,500. 4. Collected $48,000 of the accounts receivable 5. Recorded $10,000 of accrued salaries at the end of the year 6. Paid a $2,000 cash dividend to the stockholders

Explanation / Answer

a.

b-1.

b-2.

b-3.

b-4.

MILEA INC. Accounting Equation For the Year Ended December 31, Year 1 Event Assets = Liabilities + Stockholders' Equity Account Titles for Retained Earnings Cash Accounts Receivable = Salaries Payable + Common Stock Retained Earnings 1 20000 = + 20000 NA 2 56000 = + 56000 Service Revenue 3 -2500 = + -2500 Utility Expense 4 48000 -48000 = + NA 5 = 10000 + -10000 Salaries Expense 6 -2000 = + -2000 Dividends Totals 63500 8000 = 10000 + 20000 41500

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