Nelson Company Experienced the Following Transactions During Year 1, Its

Multiple Choice

Nelson Company experienced the following transactions during Year 1, its first year in operation.Issued $9,600 of common stock to stockholdersProvided $5,900 of services on accountPaid $2,500 cash for operating expensesCollected $3,700 of cash from accounts receivablePaid a $280 cash dividend to stockholdersWhat is the amount of retained earnings that will be shown on the company's balance sheet prepared as of December 31, Year 1?

A) $2,480
B) $3,400
C) $3,120
D) $12,720