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:

Passenger Ship

A large vessel designed to carry people across water, often equipped with various amenities for comfort and entertainment.

Disaster

A sudden event, such as an accident or a natural catastrophe, that causes great damage or loss of life.

Titanic

A British passenger liner that sank in the North Atlantic Ocean in 1912 after hitting an iceberg, leading to significant loss of life.

Ocean Floor

The bottom surface of the Earth's oceans, consisting of various geographical features like plains, mountains, and trenches, providing habitat for diverse marine life.