Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.) 1) Acquired $1400 cash from the issue of common stock. 2) Borrowed $870 from a bank. 3) Earned $1050 of revenues. \ 4) Paid expenses of $340. 5) Paid a $140 dividend. During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.) 1) Issued an additional $775 of common stock. 2) Repaid $535 of its debt to the bank. 3) Earned revenues of $1200. 4) Incurred expenses of $540. 5) Paid dividends of $190. What was the balance of Packard's Retained Earnings account before closing in Year 1?
A. $730.
B. $570.
C. $0.
D. $710.
Answer: C
Business
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