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

Question

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The Answer of 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

Packard Company Engaged in the Following Transactions During Year 1