Exercise 2-8A Effect of accruals on the financial statements LO 2-2, 2-3, 2-4 [The following information applies to the questions displayed below.] Milea Inc. experienced the following events in Year 1, its first year of operations: Received $16,000 cash from the issue of common stock. Performed services on account for $45,000. Paid the utility expense of $1,150. Collected $37,460 of the accounts receivable. Recorded $5,600 of accrued salaries at the end of the year. Paid a $1,050 cash dividend to the stockholders.

Required information Exercise 2-8A Effect of accruals on the financial statements LO 2-2, 2-3, 2-4 [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 $16,000 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,150. 4. Collected $37,460 of the accounts receivable. 5. Recorded $5,600 of accrued salaries at the end of the year. 6. Paid a $1,050 cash dividend to the stockholders. b-3. Prepare the balance sheet. Answer is complete but not entirely correct. MILEA INC. Balance Sheet As of December 31, Year 1 Assets Cash Accounts receivable $ 52,150 X 37,460 X $ 89,610 Total assets Liabilities Salaries payable $ 5,600 Total liabilities $ 5,600 Stockholders' Equity Common stock Retained earnings $ 16,000 33,350 49,350 Total stockholders' equity Total liabilities and stockholders' equity $ 54,950