Kelly Company experienced the following events during its first accounting period. (1)Issued common stock for $10,000 cash.
(2)Earned $8,000 of cash revenue.
(3)Paid $1,000 cash to purchase land.
(4)Paid cash dividends amounting to $500.
(5)Paid $4,400 of cash expenses.
Based on this information the amount of net income is
A)$2,100.
B)$2,600.
C)$3,600.
D)$5,600.

Question

Quizplus · Accepted Answer

The Answer of Kelly Company experienced the following events during its first accounting period. (1)Issued common stock for $10,000 cash.
(2)Earned $8,000 of cash revenue.
(3)Paid $1,000 cash to purchase land.
(4)Paid cash dividends amounting to $500.
(5)Paid $4,400 of cash expenses.
Based on this information the amount of net income is
A)$2,100.
B)$2,600.
C)$3,600.
D)$5,600.

Kelly Company Experienced the Following Events During Its First Accounting