Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume...

 

Transcribed Image Text:

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 $1,400 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 after-closing amount of retained earnings that will be reported on Packard's balance sheet at the end of Year 2? (Assume that closing entries have been made). 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 $1,400 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 after-closing amount of retained earnings that will be reported on Packard's balance sheet at the end of Year 2? (Assume that closing entries have been made).

Answer rating: 100% (QA)

Solution Retained earnings at the end of Year 1 Revenue ... View the full answer