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Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $1,150 cash from the issue of common stock. 2) Borrowed $620 from a bank. 3) Earned $800 of revenues cash. 4) Paid expenses of $290. 5) Paid a $90 dividend. During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.) 1) Issued an additional $525 of common stock. 2) Repaid $360 of its debt to the bank. 3) Earned revenues of $950 cash. 4) Paid expenses of $440. 5) Paid dividends of $140. What is the amount of total assets that will be reported on Packard's balance sheet at the end of Year 2

Sagot :

The amount of the total assets that should be reported on the balance sheet at the closing of year 2 is $2,725.

The following formula should be used for determining the total assets:

= Acquired cash + borrowed amount + revenues earned - expenses paid - dividend paid + issuance of the additional common stock - repaid debt amount + revenues earned - expenses paid - dividend paid

= $1,150 + $620 + $800 - $290 - $90 + $525 - $360 + $950 - $440 - $140

= $2,725

Therefore we can conclude that the amount of the total assets that should be reported on the balance sheet at the closing of year 2 is $2,725.

Learn more about the asset here: brainly.com/question/13848560

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