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Milea Incorporated experienced the following events in Year 1, its first year of operations: 1. Received $13,000 cash from the issue of common stock. 2.
Milea Incorporated experienced the following events in Year 1, its first year of operations: 1. Received $13,000 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,450. 4. Collected $35,140 of the accounts recelvable. 5. Recorded $6,350 of accrued salaries at the end of the year. 6 . Paid a $900 cash dividend to the stockholders. Required: a. Record the events in 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. Note: Enter any decreases to account balances with a minus sign. Not all cells require an input - leave cells blank if there is no corresponding Retained Earnings input needed. b-1. Prepare the income statement. b-2. Prepare the statement of changes in stockholders' equity. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ MILEA INCORPORATED } \\ \hline \multicolumn{3}{|c|}{ Balance Sheet } \\ \hline \multicolumn{3}{|c|}{ As of December 31, Year 1} \\ \hline Assets & . & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total assets & $ & 0 \\ \hline \multicolumn{3}{|l|}{ Liabilities } \\ \hline & & \\ \hline & & \\ \hline Total liabilities & $ & 0 \\ \hline \multicolumn{3}{|l|}{ Stockholders' Equity } \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total stockholders' equity & & 0 \\ \hline Total liabilities and stockholders' equity & $ & 0 \\ \hline \end{tabular} b-4. Prepare the statement of cash flows for the Year 1 accounting period. Note: Amounts to be deducted and cash outflows should be indicated with a minus sign
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