Required Information Exercise 2-3A Effect of accruals on the financial statements LO 2-1, 2-2, 2-3 The following information applies to the questions displayed below.) Mllea Inc. experienced the following events in Year 1. its first year of operations: 1. Recelved $12,000 cash from the issue of common stock 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,000. 4. Collected $33,810 of the accounts receivable 5. Recorded $9,600 of accrued salaries at the end of the year. 6. Pald a $1,000 cash dividend to the stockholders. Exercise 2-3A Part a Required a. 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. (Select "NA" If there is no effect on the "Accounts Titles for Retained Earnings". Enter any decreases to account balances with a minus sign.) MILEA, INC General Ledger Accounts For the Year Ended December 31, Year 1 Assets Liabilities Stockholders' Equity Accounts Cash Salaries Common Rotained Receivable Payable Stock Earnings 12,000 12.000 Event Accounts Titles for Retained Earnings 1. 2. 3 4 5. 6. Totals 12.000 12,000 0 Exercise 2-3A Part b b-1. Prepare the income statement. MILEA, INC. Income Statement For the Year Ended December 31, Year 1 Expenses Total expenses 0 $ 0 b-2. Prepare the statement of changes in stockholders' equity. MILEA, INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock $ 0 Ending common stock Beginning retained earnings 0 Ending retained earnings Total stockholders' equity $ 0 b-4. Prepare the statement of cash flows for the Year 1 accounting period. (Amounts to be deducted should be indicated with a minus sign.) MILEA INC Statement of Cash Flow For the Year Ended December 31 Year 1 Cash flow from operating activities s Net cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Nel cash flow from financing activities Nel change in cash 0 0 Ending cash balance