Packard Company Engaged in the Following Transactions During Year 1

Multiple Choice

Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.) 1) Acquired $1,050 cash from the issue of common stock.2) Borrowed $520 from a bank.3) Earned $750 of revenues.4) Paid expenses of $270.5) Paid a $70 dividend.
During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)
1) Issued an additional $425 of common stock.2) Repaid $290 of its debt to the bank.3) Earned revenues of $850.4) Incurred expenses of $400.5) Paid dividends of $120.
The amount of total liabilities on Packard's Year 1 balance sheet is

A) $230
B) $400
C) $520
D) $790