Required information Exercise 2-8A 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 $14,000 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 $37.260 of the accounts receivable, 5. Recorded $7600 of accrued salaries at the end of the year. 6. Paid a $1,000 cash dividend to the stockholders. Exercise 2-8A Part b b-1. Prepare the income statement MILEA INC Income Statement For the Year Ended December 31, Year 1 Revenue $ 45,000 Expenses Utility expense $ 1,000 Salaries expense 7,600 Total expenses Not income 8,600 $ 36,400 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 EA 0 Ending common stock Beginning retained earnings 0 Ending retained earnings Total stockholders' equity 0 $ 0 b-3. Prepare the balance sheet. MILEA INC. Balance Sheet As of December 31. Year 1 Assets $ 0 Total assets Liabilities $ $ 0 Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity 0 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 Flows For the Year Ended December 31. Year 1 Cash flow from operating activities $ Net cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Net cash flow from financing activities Net change in cash 0 0 Ending cash balance $ 0