Packard Company Engaged in the Following Transactions During Year 1

question 92

Multiple Choice

Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $1,250 cash from the issue of common stock.2) Borrowed $720 from a bank.3) Earned $900 of revenues cash.4) Paid expenses of $310.5) Paid a $110 dividend.During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.) 1) Issued an additional $625 of common stock.2) Repaid $430 of its debt to the bank.3) Earned revenues of $1,050 cash.4) Incurred expenses of $480.5) Paid dividends of $160.What was the amount of total stockholders' equity on Packard's balance sheet at the end of Year 1?

• A) $1,840
• B) $310
• C) $1,730
• D) $1,140

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Definitions:

Social Groups

Collections of individuals defined by shared interests or characteristics, forming a basic unit of social organization.

Cohabitation

The state of living together and having a sexual relationship without being married.

Concubinage

A relationship where a person cohabits with another without being legally married, historically often recognized in various cultures for secondary partners.

Polygamy

A form of marriage involving more than one spouse simultaneously.