Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $1,950 cash from the issue of common stock. 2) Borrowed $1,420 from a bank. 3) Earned $1,600 of revenues cash. 4) Paid expenses of $450. 5) Paid a $250 dividend. During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.) 1) Issued an additional $1,325 of common stock. 2) Repaid $920 of its debt to the bank. 3) Earned revenues of $1,750 cash. 4) Paid expenses of $760. 5) Paid dividends of $300. What is the amount of total assets that will be reported on Packard's balance sheet at the end of Year 2?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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$1,095
$990
$5,665
$5,365
Transcribed Image Text:Multiple Choice $1,095 $990 $5,665 $5,365
Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1) Acquired $1,950 cash from the issue of common stock.
2) Borrowed $1,420 from a bank.
3) Earned $1,600 of revenues cash.
4) Paid expenses of $450.
5) Paid a $250 dividend.
During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.)
1) Issued an additional $1,325 of common stock.
2) Repaid $920 of its debt to the bank.
3) Earned revenues of $1,750 cash.
4) Paid expenses of $760.
5) Paid dividends of $300.
What is the amount of total assets that will be reported on Packard's balance sheet at the end of Year 2?
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 $1,950 cash from the issue of common stock. 2) Borrowed $1,420 from a bank. 3) Earned $1,600 of revenues cash. 4) Paid expenses of $450. 5) Paid a $250 dividend. During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.) 1) Issued an additional $1,325 of common stock. 2) Repaid $920 of its debt to the bank. 3) Earned revenues of $1,750 cash. 4) Paid expenses of $760. 5) Paid dividends of $300. What is the amount of total assets that will be reported on Packard's balance sheet at the end of Year 2?
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Assets=Liabilities+Equity

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