Packard Company engaged in the following transactions during 2015, its first year in operations: ( Assume all
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Question:
Packard Company engaged in the following transactions during 2015, its first year in operations: (Assume all transactions are cash transactions.)
- 1) Acquired $1,150 cash from the issue of common stock.
- 2) Borrowed $620 from a bank.
- 3) Earned $800 of revenues.
- 4) Paid expenses of $290.
- 5) Paid a $90 dividend.
During 2016, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)
- 1) Issued an additional $525 of common stock.
- 2) Repaid $360 of its debt to the bank.
- 3) Earned revenues of $950.
- 4) Incurred expenses of $440.
- 5) Paid dividends of $140.
QUESTIONS:
What is the amount of total stockholders’ equity that will be reported on Packard’s balance sheet at the end of 2015?
What is the after-closing amount of retained earnings that will be reported on Packard’s balance sheet at the end of 2016? (Assume that closing entries have been)
What is the amount of assets that will be reported on Packard’s balance sheet at the end of 2016?
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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