! Required information Exercise 2-8A (Algo) 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 $15,500 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,200. 4. Collected $31.460 of the accounts receivable. 5. Recorded $8,200 of accrued salaries at the end of the year. 6. Paid a $900 cash dividend to the stockholders. Exercise 2-8A (Algo) Part a 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. (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.) MILEA INC Accounting Equation For the Year Ended December 31, Year 1 Assets Liabilities + Stockholders' Equity Accounts Salaries Common Retained Cash + Receivable Payable Stock Earnings 15,500 15,500 Accounts Titles for Retained Earnings Event + 11 1. + 11 2. + 3. 4. 5. + 6. Totals