Secure https://newconnect.mheducation.com/flow/connect html Saved Chapter 2 Home

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Secure https://newconnect.mheducation.com/flow/connect html Saved Chapter 2 Homework 4 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: Part 2 of 2 10 poins 1. Recelved $13,500 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Pald the utility expense of $1,150. 4. Collected $36,540 of the accounts receivable. 5. Recorded $8,100 of accrued salaries at the end of the year. 6. Pald a $1,050 cash dividend to the stockholders. Hint Print b-1. Prepare the income statement MILEA INC. Income Statement For the Year Ended December 31, Year 1 $ 13,500

Explanation / Answer

1 Income statement Service revenue 45000 Expense Utilities expense 1150 Salaries expense 8100 Total expense 9250 Net income 35750 2 Statement of changes in stockholders equity Beginning common stock 0 Add Common stock issued 13500 Ending common stock 13500 Beginning retained earnings 0 Net income 35750 Dividends -1050 Ending retained earnings 34700 Total stockholders equity 48200 3 Balance sheet Assets Cash 47840 Accounts receivable 8460 Total assets 56300 Liabilities and stockholders equity Salaries payable 8100 Stockholders equity 48200 Total liabilities and stockholders equity 56300 Cash flow statement Cash flow from operating activities Collected from customer 36540 Paid utilities expense -1150 Cash flow from operating activities 35390 Investing activities Financing activities Issue of common stock 13500 Dividend paid -1050 Cash flow from financing activities 12450 Net change in cash flow 47840 Beginning cash balance 0 Ending cash balance 47840

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