Homework 6 0 Required information The following information applies to the quest

Question

Homework 6 0 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: 1. Received $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. Paid a $1,050 cash dividend to the stockholders. b-1. Prepare the income statement MILEA, INC. Income Statement For the Year Ended December 31, Year 1 Common stock $ 13,500

Explanation / Answer

Answer =b1 MILEA INCORPORATION INCOME STATEMENT Service Revenue $                    45,000 Less: Expenses Utility Expenses $                      1,150 Salaries $                      8,100 Net Income $                    35,750 Answer =b-2 MILEA INCORPORATION STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY Beginning Common Stock $                             -   Plus : Common Stock Issued $                    13,500 Ending Common stock $                 13,500 Beginning Retained Earnings $                             -   Add: Net income of the year $                    35,750 Less: Dividend Paid of the year $                      1,050 $                 34,700 Total Stockholder's Equity $                 48,200 Answer =b-3 MILEA INCORPORATION BALANCE SHEET Assets Account Receivable $                      8,460 Cash (13500+36540-1150-1050) 47840 Total Assets $                    56,300 Liabilities Salary Payable $                      8,100 Total liabilities $                      8,100 Stockholder's Equity common Stock $                    13,500 Retained Earning $                    34,700 Total Stockhokder's Equity $                    48,200 Total of Liabilities and Shareholder's Equity $                    56,300 Answer =b-4 MILEA INCORPORATION STATEMENT OF CASH FLOW FOR THE YEAR ENDED DECEMBER 31, YEAR 1 AMOUNT AMOUNT Cash Flow From operating Activities Net income as per income statement $                 35,750 Increase in Account Receivable $                    -8,460 Increase in Salary Payable $                      8,100 $                      -360 Cash Flow From Operating Activities $                 35,390 Cash Flow From Investment activities 0 Cash Flow From Financing Activities Issue of Common stock $                    13,500 Dividend Paid $                    -1,050 Net Cash Flow From Financing Activities $                 12,450 Net Change in Cash $                 47,480

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.