Packard Company Engaged in the Following Transactions During Year 1

question 108

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 cash.
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 cash.
4) Incurred expenses of $360.
5) Paid dividends of $100.
What is Packard's retained earnings account balance at the end of Year 1 before the process of closing the accounts has been undertaken?

• A) $400
• B) $0
• C) $350
• D) $450

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Definitions:

Manager's Choice

Decisions made by a manager or leader within an organization, often involving strategic selections or directions for a team or project.

Mediator Flexibility

The ability of a mediator to adapt their strategies and approaches based on the evolving dynamics and needs of the negotiation process.

Socio-emotional Experts

Professionals specialized in understanding and managing the social and emotional aspects of human behavior, often involved in counseling, psychology, or social work.

Instrumental Experts

Specialists whose knowledge or skills are used as a means to achieve a specific goal or task.