Petras Company engaged in the following transactions during 2012, its first year in operations: (Assume all transactions are cash transactions)

1) Acquired $950 cash from the issue of common stock. 2) Borrowed $420 from a bank. 3) Earned $600 of revenues. 4) Paid expenses of $250. 5) Paid a $50 dividend.

During 2013, Petras engaged in the following transactions: (Assume all transactions are cash transactions) 1) Issued an additional $325 of common stock. 2) Repaid $220 of its debt to the bank. 3) Earned revenues of $750. 4) Incurred expenses of $360. 5) Paid dividends of $100. The amount of total equity on Petras' 2012 balance sheet is

$300.

$1,250.

$900.

$1,300.