Miles Incorporated experienced the following events in Year 1, its first year of operations: Received $12,500 cash from the issue of common stock. Performed services on account for $45,000. Paid the utility expense of $1,050. Collected $38,920 of the accounts receivable. Recorded $6,850 of accrued salaries at the end of the year. Paid a $850 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.