Sanchez Company Engaged in the Following Transactions During Year 1

question 143

Multiple Choice

Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $13,300 of common stock for cash.2) The company paid cash to purchase $8,000 of inventory.3) The company sold inventory that cost $5,400 for $11,150 cash.4) Operating expenses incurred and paid during the year, $4,900.Sanchez Company engaged in the following transactions during Year 2:1) The company paid cash to purchase $11,600 of inventory.2) The company sold inventory that cost $9,600 for $17,750 cash.3) Operating expenses incurred and paid during the year, $5,900.Note: Sanchez uses the perpetual inventory system. What is the amount of retained earnings that will be shown on the balance sheet at December 31, Year 2?

• A)$2,250
• B)$3,100
• C)$7,900
• D)$13,400

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Definitions:

L-DOPA

A precursor to dopamine used as a medication in the treatment of Parkinson's disease and dopamine-responsive dystonias.

Parkinson's Disease

A neurodegenerative disorder that affects movement, often characterized by tremors, stiffness, and slowness of movement.

Huntington's Disease

A hereditary neurodegenerative disorder characterized by motor control loss, cognitive decline, and psychological symptoms.

Left Hemisphere

The half of the human brain that is typically responsible for controlling the right side of the body and is often associated with analytical tasks, language processing, and logic.