Answered

Discover a wealth of knowledge at Westonci.ca, where experts provide answers to your most pressing questions. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

Nelson Company experienced the following transactions during Year 1, its first year in operation. Acquired $6,200 cash by issuing common stock. Provided $2,500 of services on account. Paid $1,650 cash for operating expenses. Collected $2,000 of cash from customers in partial settlement of its accounts receivable. Paid a $110 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

Sagot :

ayokenny2001

Answer:

$740

Explanation:

The balance of retained earnings that would be reported on the balance sheet as of December 31 year 1 is computed as;

= Services provided on account - cash paid for operating expenses - cash dividend paid to stockholders

= $2,500 - $1,650 - $110

= $740

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.