Answered

At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Milea Inc. experienced the following events in Year 1, its first year of operations:

Received $20,000 cash from the issue of common stock.
Performed services on account for $56,000.
Paid the utility expense of $2,500.
Collected $48,000 of the accounts receivable.
Recorded $10,000 of accrued salaries at the end of the year.
Paid a $2,000 cash dividend to the stockholders.

Required:
Record the events in general ledger accounts under an accounting equation.

Sagot :

anthougo

The Accounting equation is Assets = Liabilities + Equity.

a. Assets (Cash) $20,000 = Liabilities + Equity (Common Stock) $20,000

b. Assets (Accounts Receivable) $56,000  = Liabilities + Equity (Service Revenue) $56,000

c. Assets (Cash) ($2,500) = Liabilities + Equity (Utility Expense) ($2,500)

d. Assets (Cash) $48,000 + (Accounts Receivable) ($48,000) = Liabilities + Equity

e. Assets = Liabilities (Salaries Payable) $10,000 + Equity (Salaries Expense) ($10,000)

f. Assets (Cash) ($2,000) = Liabilities + Equity (Dividend) ($2,000)

Data Analysis:

a. Cash $20,000 Common Stock $20,000

b. Accounts Receivable $56,000 Service Revenue $56,000

c. Utility Expense $2,500 Cash $2,500

d. Cash $48,000 Accounts Receivable $48,000

e. Salaries Expense $10,000 Salaries Payable $10,000

f. Dividend $2,000 Cash $2,000

Thus, the general ledger accounts, in bracket, record the events under the accounting equation as showed above in the books of Milea Inc.

Learn more about the accounting equation at https://brainly.com/question/23920579

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.