Required information [The following information applies to the questions displayed below.) Schmitty Company had the following transactions during Year 1, its first year of 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 $650 of revenues. 4) Pald expenses of $250. 5) Pald a $50 dividend. During Year 2. Schmitty had 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) Eamed revenues of $750. 4) Incurred expenses of $360. 5) Paid dividends of $100. What was the balance of Schmitty's Retained Earnings account before closing in Year 1? 5) Paid dividends of $100. What was the balance of Schmitty's Retained Earnings account before closing in Year 12 Multiple Choice $400 O $0 O $350 $450