Milea Incorporated experienced the following events in Year $1,$ its first year of operations:

Received $$14,000$ cash from the issue of common stock.

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

Paid the utility expense of $$1,500.$

Collected $$37,770$ of the accounts receivable.

Recorded $$7,650$ of accrued salaries at the end of the year.

Paid a $$800$ cash dividend to the stockholders.

Required

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. $($Not all cells require input. Enter any decreases to account balances with a minus sign.$)$

$2.$ Milea Incorporated experienced the following events in Year $1,$ its first year of operations:

Received $$14,000$ cash from the issue of common stock.

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

Paid the utility expense of $$1,500.$

Collected $$37,770$ of the accounts receivable.

Recorded $$7,650$ of accrued salaries at the end of the year.

Paid a $$800$ cash dividend to the stockholders.

Prepare the income statement for the Year $1$ accounting period.

Prepare the statement of changes in stockholders$$ equity for the Year $1$ accounting period.

Prepare the balance sheet for the Year $1$ accounting period.

Prepare the statement of cash flows for the Year $1$ accounting period. $($Enter cash outflows with a minus sign.$)$

$3.$ Cordell Incorporated experienced the following events in Year $1,$ its first year of operation:

Received $$49,000$ cash from the issue of common stock.

Performed services on account for $$77,000.$

Paid a $$4,900$ cash dividend to the stockholders.

Collected $$55,000$ of the accounts receivable.

Paid $$49,000$ cash for other operating expenses.

Performed services for $$15,500$ cash.

Recognized $$1,900$ of accrued utilities expense at the end of the year.

Required

a$.$ & c$.$ Identify the events that result in revenue or expense recognition and those which affect the statement of cash flows. In the Statement of Cash Flows column, use OA to designate operating activity, FA for financing activity, or IA for investing activity. If the element is not affected by the event, leave the cell blank.

b$.$ Based on your response to Requirement a$,$ determine the amount of net income reported on the Year $1$ income statement.

d$.$ Based on your response to Requirement c$,$ determine the amount of cash flow from operating activities reported on the Year $1$ statement of cash flows.

e$.$ What is the before$-$ and after$-$closing balance in the service revenue account?

f$.$ What is the balance of the retained earnings account that appears on the Year $1$ balance sheet?

$4.$ Love Company$$s accounting records show an after$-$closing balance of $$21,300$ in its Retained Earnings account on December $31,$ Year $2.$ During the Year $2$ accounting cycle, Love earned $$18,900$ of revenue, incurred $$11,100$ of expense, and paid $$3,400$ of dividends. Revenues and expenses were recognized evenly throughout the accounting period.

Required

a$.$ Determine the balance in the Retained Earnings account as of January $1,$ Year $3.$

b$.$ Determine the balance in the temporary accounts as of January $1,$ Year $2.$

c$.$ Determine the after$-$closing balance in the Retained Earnings account as of December $31,$ Year $1.$

d$.$ Determine the balance in the Retained Earnings account as of June $30,$ Year $2.$

$5.$ ard Professionals Incorporated experienced the following events in Year $1,$ its first year of operation:

Performed services for $$18,000$ cash.

Purchased $$6,400$ of supplies on account.

A physical count on December $31,$ Year $1,$ found that there was $$1,270$ of supplies on hand.

Required

Based on this information alone:

a$.$ Record the events in general ledger accounts under an accounting equation.

b$.$ Prepare an income statement, balance sheet, and statement of cash flows for the Year $1$ accounting period.

c$.$ What is the balance in the Supplies account as of January $1,$ Year $2?$

d$.$ What is the balance in the Supplies Expense account as of January $1,$ Year $2?$