Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions). 1) Acquired $1,900 cash from the issue of common stock.
2) Borrowed $1,370 from a bank.
3) Earned $1,550 of revenues cash.
4) Paid expenses of $440.
5) Paid a $240 dividend.
During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions).
1) Issued an additional $1,275 of common stock.
2) Repaid $885 of its debt to the bank.
3) Earned revenues of $1,700 cash.
4) Incurred expenses of $740.
5) Paid dividends of $290.
What is Packard's retained earnings account balance at the end of Year 1 before the process of closing the accounts has been undertaken?