Reference no: EM132474319

Question - Milea Inc. experienced the following events in 2018, its first year of operations:

1. Received $16,000 cash from the issue of common stock.

2. Performed services on account for $45,000.

3. Paid the utility expense of $1,400.

4. Collected $39,760 of the accounts receivable.

5. Recorded $5,150 of accrued salaries at the end of the year.

6. Paid a $750 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.

B. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for the 2018 accounting period.