Nelson Company Experienced the Following Transactions During Year 1, Its

question 126

Multiple Choice

Nelson Company experienced the following transactions during Year 1, its first year in operation.Acquired $9,200 cash by issuing common stock.Provided $5,500 of services on account.Paid $2,400 cash for operating expenses.Collected $3,500 of cash from customers in partial settlement of its accounts receivable.Paid a $260 cash dividend to stockholders.What is the balance of the retained earnings that will be reported on the balance sheet as of December 31, Year 1?

• A)$10,300
• B)$12,040
• C)$3,100
• D)$2,840

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Definitions:

Sensation Thinker

An individual who predominantly relies on concrete, factual information and logical analysis when making decisions or understanding the world.

Realistic Approach

A practical and sensible method that is based on actual conditions and achievable outcomes.

Human Relations

The study and management of how individuals relate to and interact with one another, especially in the workplace.

Intuitive Feelers

Individuals who primarily rely on intuition and feelings in their decision-making process, often associated with the Myers-Briggs Type Indicator personality types.