[The Following Information Applies to the Questions Displayed Below

question 9

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 amount of net income that will be reported on the Year 1 income statement?

• A)$1,400
• B)$800
• C)$1,000
• D)$1,200

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Definitions:

Omnivores

Organisms that obtain energy and nutrients by consuming a diet made up of both plant and animal products.

Dentition

The arrangement or condition of the teeth in a particular species or individual.

Cro-Magnon

Common name for the first fossils to be designated Homo sapiens.

Spears

Long-shafted weapons with a pointed tip, historically used for hunting and combat by various cultures around the world.