Nelson Enterprises experienced the following transactions during 2015, its first year in operation. 1. Issued $8,500 of common stock to stockholders. 2. Provided $3,100 of services on account. 3. Paid $2,200 cash for operating expenses. 4. Collected $2,500 of cash from accounts receivable. 5. Paid a $150 cash dividend to stockholders. The amount of net income recognized on Nelson Enterprises' 2015 income statement is:
Nelson Enterprises experienced the following transactions during 2015, its first year in operation. 1. Issued $8,500 of common stock to stockholders. 2. Provided $3,100 of services on account. 3. Paid $2,200 cash for operating expenses. 4. Collected $2,500 of cash from accounts receivable. 5. Paid a $150 cash dividend to stockholders. The amount of net income recognized on Nelson Enterprises' 2015 income statement is:
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 17E
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Transcribed Image Text:Nelson Enterprises experienced the following transactions during 2015, its first
year in operation.
1. Issued $8,500 of common stock to stockholders.
2. Provided $3,100 of services on account.
3. Paid $2,200 cash for operating expenses.
4. Collected $2,500 of cash from accounts receivable.
5. Paid a $150 cash dividend to stockholders.
The amount of net income recognized on Nelson Enterprises' 2015 income
statement is:
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