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question 82

Multiple Choice

[The following information applies to the questions displayed below.]

Nelson Company experienced the following transactions during Year 1, its first year in operation.

Acquired $12,000 cash by issuing common stock
Provided $4,600 of services on account
Paid $3,200 cash for operating expenses
Collected $3,800 of cash from customers in partial settlement of its accounts receivable
Paid a $200 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)$1,200
• B)$1,000
• C)$1,400
• D)$13,200

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