Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

1. Received $16,500 cash from the issue of common stock 2. Performed services on

ID: 2334562 • Letter: 1

Question

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 $1,050 4. Collected $34,530 of the accounts receivable 5. Recorded $7,350 of accrued salaries at the end of the year 6. Paid a $1,450 cash dividend to the stockholders
Required a. Record the events in general ledger accounts under an accounting equation. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. The first transaction has been recorded as an example. (Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings". Enter any decreases to account balances with a minus sign.) Accounting equation For the Year Ended December 31, Year 1 Liabilities Common Retained Retained Earnings 16,500 16,500

Explanation / Answer

MELIA INC.

Accounting equation

For the Year ended December 31. Year 1

Assets

=

Liabilities+

Shareholder's equity

Event

Cash

Accounts Receivable

=

Salaries payable

Common Stock

+

Retained earnings

Accounts title for retained earnings

1

$ 16,500.00

=

$16,500.00

+

N/A

N/A

2

$ 45,000.00

=

+

$ 45,000.00

Service Revenue

3

$ -1,050.00

=

+

$ -1,050.00

Utilities expense

4

$ 34,530.00

$ -34,530.00

=

+

N/A

N/A

5

=

$   7,350.00

+

$ -7,350.00

Salaries Expense

6

$ -1,450.00

=

+

$ -1,450.00

Dividends

Total

$ 48,530.00

$ 10,470.00

=

$   7,350.00

$ 16,500.00

+

$ 35,150.00

MELIA INC.

Accounting equation

For the Year ended December 31. Year 1

Assets

=

Liabilities+

Shareholder's equity

Event

Cash

Accounts Receivable

=

Salaries payable

Common Stock

+

Retained earnings

Accounts title for retained earnings

1

$ 16,500.00

=

$16,500.00

+

N/A

N/A

2

$ 45,000.00

=

+

$ 45,000.00

Service Revenue

3

$ -1,050.00

=

+

$ -1,050.00

Utilities expense

4

$ 34,530.00

$ -34,530.00

=

+

N/A

N/A

5

=

$   7,350.00

+

$ -7,350.00

Salaries Expense

6

$ -1,450.00

=

+

$ -1,450.00

Dividends

Total

$ 48,530.00

$ 10,470.00

=

$   7,350.00

$ 16,500.00

+

$ 35,150.00