[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. $1,000
B. $1,400
C. $13,200
D. $1,200


Answer: D

Business

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