Question

Nelson Company experienced the following transactions during Year 1, its first year in operation.

1. Issued $8,000 of common stock to stockholders.
2. Provided $4,300 of services on account.
3. Paid $2,100 cash for operating expenses.
4. Collected $2,900 of cash from accounts receivable.
5. Paid a $200 cash dividend to stockholders.

The total amount of assets shown on Nelson Company's December 31, Year 1 balance sheet is:

Answer 1

Preparation of Balance Sheet: Assets Cash Accounts Receivable Total Current Assets Total Assets 5,700.00 4,300.00 10,000.00 10,000.00 Liabilities and Stockholders' Equity Total Liabilities Common Stock 8,000.00 Retained Earnings ($4300-$2100- 200) 2,000.00 Total Stockholders' Equity 10,000.00 Total Liabilities & Stockholders' Equity 10,000.00 $