Question

Nelson Company experienced the following transactions during 2016, its first year in operation.

1. Issued $6,600 of common stock to stockholders.
2. Provided $2,900 of services on account.
3. Paid $1,750 cash for operating expenses.
4. Collected $2,200 of cash from accounts receivable.
5. Paid a $130 cash dividend to stockholders.
35.
The amount of net income recognized on Nelson Company's 2016 income statement is:_______.
a. $1,020.
b. $700.
c. $830.
d. $1,150.

Answer 1

d. $1,150

Step-by-step explanation:

Calculation for what The amount of net income recognized on Nelson Company's 2016 income statement is:

Using this formula

Net income = Service Revenue - Operating Expenses

Let plug in the formula

Net income= $2,900-$1,750

Net income=$1,150

Therefore The amount of net income recognized on Nelson Company's 2016 income statement is:$1,150