Exercise 2-3A (Algo) Effect of accruals on the financial statements LO 2-1, 2-2, 2-3 [The following information applies to the questions displayed below.] Milea Incorporated experienced the following events in Year 1, its first year of operations: 1. Received $14,500 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 $33,580 of the accounts receivable. 5. Recorded $5,100 of accrued salaries at the end of the year. 6. Paid a $800 cash dividend to the stockholders. MILIA, INCORPORATED Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock Ending common stock Beginning retained earnings $ 0 Ending retained earnings 0 Total stockholders' equity $ 0 Assets Total assets Liabilities Total liabilities Stockholders' Equity MILIA, INCORPORATED Balance Sheet As of December 31, Year 1 Total stockholders' equity Total liabilities and stockholders' equity $ 6A 0 $ 0 0 69 $ 0 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 Cash flow from investing activities Cash flow from financing activities Net cash flow from financing activities Net change in cash Ending cash balance EA $ 0 0 0 0