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Milea Inc. experienced the following events in Year 1, its first year of operations:

Received $16,500 cash from the issue of common stock.
Performed services on account for $45,000.
Paid the utility expense of $1,300.
Collected $39,510 of the accounts receivable.
Recorded $5,650 of accrued salaries at the end of the year.
Paid a $1,200 cash dividend to the stockholders.

Required:
a. Prepare the income statement.
b. Prepare the statement of changes in stockholders’ equity.
c. Prepare the balance sheet.

Respuesta :

anthougo

Milea Inc.'s financial statements can be prepared as follows:

a. Milea Inc.'s

Income Statement

For Year 1 ended December 31

Service Revenue                        $45,000

Utility Expense             1,300

Salaries Expense        5,650        (6,950)

Net income                               $38,050

b. Milea Inc.'s

Statement of Changes in Stockholders' Equity

As of December 31, Year 1

Common Stock       $16,500

Net income               38,050

Dividends                   (1,200)

Equity balance     $53,350

Retained Earnings:

Net income              38,050

Dividends                  (1,200)

Retained earnings  36,850

c. Milea Inc.'s

Balance Sheet

As of December 31, Year 1

Assets:

Cash                             $53,510

Accounts Receivable     5,490

Total assets               $59,000

Liabilities and Equity:

Liabilities:

Salaries Payable        $5,650

Equity:

Common Stock          16,500

Retained earnings    36,850

Total equity               53,350

Liabilities & equity $59,000

Data Analysis:

Cash $16,500 Common Stock $16,500

Accounts Receivable $45,000 Service Revenue $45,000

Utility Expense $1,300 Cash $1,300

Cash $39,510 Accounts Receivable $39,510

Salaries Expense $5,650 Salaries Payable $5,650

Dividends $1,200 Cash $1,200

Trial Balance

Account Titles               Debit     Credit

Cash                            $53,510 ($16,500 + $39,510 -$1,300 - $1,200)

Accounts Receivable    5,490 ($45,000 - $39,510)

Common Stock                            $16,500

Salaries Payable                             5,650

Service Revenue                          45,000

Utility Expense             1,300

Salaries Expense        5,650

Dividends                     1,200

Totals                       $67,150      $67,150

Learn more about preparing balance sheet at https://brainly.com/question/6338497

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