Packard Company Engaged in the Following Transactions During Year 1

question 95

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 $950 cash from the issue of common stock.2) Borrowed $420 from a bank.3) Earned $650 of revenues.4) Paid expenses of $250.5) Paid a $50 dividend. During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.) 1) Issued an additional $325 of common stock.2) Repaid $220 of its debt to the bank.3) Earned revenues of $750.4) Incurred expenses of $360.5) Paid dividends of $100.
The amount of assets on Packard's Year 2 balance sheet is

• A)$2,115.
• B)$440.
• C)$2,215.
• D)$395.

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Definitions:

Magnetic Flux

The measurement of the total magnetic field passing through a given area, represented symbolically as Φ, and providing insight into the strength and direction of magnetic fields.

Lenz's Law

A principle stating that an induced electromotive force (emf) always generates a current whose magnetic field opposes the original change in magnetic flux.

Left-hand Generator Rule

A rule that predicts the direction of induced current flow in a generator's conductor moving perpendicular to a magnetic field, using the left hand to demonstrate orientation.

Inductors

Electrical components that store energy in a magnetic field when electric current flows through them, typically used in filters and chokes.