Nelson Company Experienced the Following Transactions During Year 1, Its

question 43

Multiple Choice

Nelson Company experienced the following transactions during Year 1, its first year in operation.Acquired $12,000 cash by issuing common stockProvided $4,600 of services on accountPaid $3,200 cash for operating expensesCollected $3,800 of cash from customers in partial settlement of its accounts receivablePaid a $200 cash dividend to stockholdersWhat is the balance of the retained earnings that will be reported on the balance sheet as of December 31, Year 1?

• A)$1,200
• B)$1,000
• C)$1,400
• D)$13,200

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Definitions:

Cognitive Process

Mental activities involved in acquiring, storing, retrieving, and using information, including thinking, reasoning, and problem-solving.

Practice

Repeated exercise in or performance of an activity or skill so as to acquire or maintain proficiency in it.

Task

A piece of work or activity assigned to someone as part of a job or course of study, often requiring effort to complete.

Intent

The purpose or plan that guides an individual's actions or the deliberate determination to perform a specific act.