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Nelson Company experienced the following transactions during Year 1, its first year in operation. Issued $12,000 of common stock to stockholders. Provided $4,600 of services
Nelson Company experienced the following transactions during Year 1, its first year in operation.
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- Issued $12,000 of common stock to stockholders.
- Provided $4,600 of services on account.
- Paid $3,200 cash for operating expenses.
- Collected $3,800 of cash from accounts receivable.
- Paid a $200 cash dividend to stockholders.
The amount of retained earnings appearing on Nelson Company's December 31, Year 1 balance sheet is:
$1,200.
$1,000.
$1,400.
$13,200
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Nelson Company experienced the following transactions during Year 1, its first year in operation.
- Issued $12,000 of common stock to stockholders.
- Provided $4,600 of services on account.
- Paid $3,200 cash for operating expenses.
- Collected $3,800 of cash from accounts receivable.
- Paid a $200 cash dividend to stockholders.
The amount of net income recognized on Nelson Company's Year 1 income statement is:
$1,400.
$800.
$1,000.
$1,200.
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