Packard Company Engaged in the Following Transactions During Year 1

question 170

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 $1,750 cash from the issue of common stock.2) Borrowed $1,220 from a bank.3) Earned $1,450 of revenues.4) Paid expenses of $410.5) Paid a $210 dividend.
During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)
1) Issued an additional $1,125 of common stock.2) Repaid $780 of its debt to the bank.3) Earned revenues of $1,550.4) Incurred expenses of $680.5) Paid dividends of $260.
What is the amount of total stockholders' equity that will be reported on Packard's balance sheet at the end of Year 1?

• A)$1,540
• B)$570
• C)$2,790
• D)$2,580

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