Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)
1) Acquired $1,300 cash from the issue of common stock.
2) Borrowed $770 from a bank.
3) Earned $950 of revenues.
4) Paid expenses of $320.
5) Paid a $120 dividend.
During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)
1) Issued an additional $675 of common stock.
2) Repaid $465 of its debt to the bank.
3) Earned revenues of $1,100.
4) Incurred expenses of $500.
5) Paid dividends of $170.
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 posted).
