Required information Exercise 2-8A Effect of accruals on the financial statements LO 2-2, 2-3, 2-4 Skip to question [The following information applies to the questions displayed below.] Milea Inc. experienced the following events in Year 1, its first year of operations: Received $14,000 cash from the issue of common stock. Performed services on account for $45,000. Paid the utility expense of $1,250. Collected $30,480 of the accounts receivable. Recorded $5,300 of accrued salaries at the end of the year. Paid a $750 cash dividend to the stockholders. Exercise 2-8A Part b b-1.

Prepare the income statement. b-2.

Prepare the statement of changes in stockholders equity. b-3.

Prepare the balance sheet. 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.)