Required information [The following information applies to the questions display

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:

Received $20,000 cash from the issue of common stock.

Performed services on account for $56,000.

Paid the utility expense of $2,500.

Collected $48,000 of the accounts receivable.

Recorded $10,000 of accrued salaries at the end of the year.

Paid a $2,000 cash dividend to the stockholders.

15 points Balance Sheet 13 of 14 Next >

Explanation / Answer

Milea Inc.

Balance sheet

As on December 31, Year 1

Retained earnings = 56000-10000-2500-2000 = 41500

Assets Cash 63500 Account receivable 8000 Total Assets 71500 Liabilities Salary payable 10000 Total liabilities 10000 Stockholder's equity Common Stock 20000 Retained earnings 41500 Total Stockholder's equity 61500 Total liabilities and stockholder's equity 71500

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