1.

Required information Exercise 2-3A (Algo) Effect of accruals on the nancial statements LO 2-1, 2-2, 2-3 [The foiiowing information applies to the questions dispiayed beiow] Milea Incorporated experienced the following events in Year i, 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 $1,000. 4. Collected $33,980 of the accounts receivable. 5. Recorded $6,300 of accrued salaries at the end ofthe year. 6. Paid a $1,500 cash dividend to the stockholders. Exercise 2-3A (Algo) Part b b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for the Year 1 accounting period. Complete this question by entering your answers in the tabs below. Req Bl Reg 32 Req E53 Req B4 Prepare the income statement for the Year 1 accounting period. Expenses Total expenses Req BZ ) Req B1 Req B2 Req B3 Req B4 Prepare the statement of changes in stockholders' equity for the Year 1 accounting period. MILIA, INCORPORATED Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock Ending common stock 0 Beginning retained earnings Ending retained earnings Total stockholders' equity 0 Total assets Liabilities Total liabilities $ t] Stockholders' Equity Total stockholders' equity 0 Total liabilities and stockholders' equity $ 0 Req B1 Req B2 Req B3 Req B4 Prepare the statement of cash flows for the Year 1 accounting period. (Enter cash outflows with a minus sign.) MILIA, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities Net cash flow from operating activities $ 0 Cash flow from investing activities Cash flow from financing activities Net cash flow from financing activities 0 Net change in cash 0 Ending cash balance $ 0