Packard Company Engaged in the Following Transactions During Year 1

question 12

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 $1,020 cash from the issue of common stock.2) Borrowed $490 from a bank.3) Earned $790 of revenues.4) Paid expenses of $320.5) Paid a $85 dividend.
During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)
1) Issued an additional $395 of common stock.2) Repaid $290 of its debt to the bank.3) Earned revenues of $820.4) Incurred expenses of $430.5) Paid dividends of $170.
What was the balance of Packard's Retained Earnings account before closing in Year 1?

• A)$470
• B)$0
• C)$490
• D)$660

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X

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