Kelly Company Experienced the Following Events During Its First Accounting

question 91

Multiple Choice

Kelly Company experienced the following events during its first accounting period.
(1) Issued common stock for $10,000 cash.
(2) Earned $8,000 of cash revenue.
(3) Paid $1,000 cash to purchase land.
(4) Paid cash dividends amounting to $500.
(5) Paid $4,400 of cash expenses.
Based on this information, what is the amount of net income?

• A) $2,100
• B) $2,600
• C) $3,600
• D) $5,600