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The following information applies to the questions displayed below.] Milea Inc.

ID: 2338017 • Letter: T

Question

The following information applies to the questions displayed below.]
  
Milea Inc. experienced the following events in Year 1, its first year of operations:

Received $14,000 cash from the issue of common stock.

Performed services on account for $45,000.

Paid the utility expense of $1,050.

Collected $37,560 of the accounts receivable.

Recorded $9,800 of accrued salaries at the end of the year.

Paid a $1,200 cash dividend to the stockholders.

b-2. Prepare the statement of changes in stockholders' equity. MILEA,INC Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity 0

Explanation / Answer

MILEA INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock 0 Common stock issued 14000 Ending common stock 14000 Beginning retained earnings 0 Net income (45000-1050-9800) 34150 Dividends -1200 Ending retained earnings 32950 Total stockholders' equity 46950