1. Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)

   1. 1. Acquired $6,000 cash from issuing common stock.

   2. 2. Borrowed $4,400 from a bank.

   3. 3. Earned $6,200 of revenues.

   4. 4. Incurred $4,800 in expenses.

   5. 5. Paid dividends of $800.

   Lexington Company engaged in the following transactions during Year 2:

2. 1. 1. Acquired an additional $1,000 cash from the issue of common stock.

   2. 2. Repaid $2,600 of its debt to the bank.

   3. 3. Earned revenues, $9,000.

   4. 4. Incurred expenses of $5,500.

   5. 5. Paid dividends of $1,280.

   The amount of retained earnings on Lexington's balance sheet at the end of Year 1 was:

   		$6,200.
   		$5,400.
   		$1,400.
   		$600.

1. Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)

   1. 1. Acquired $6,000 cash from issuing common stock.

   2. 2. Borrowed $4,400 from a bank.

   3. 3. Earned $6,200 of revenues.

   4. 4. Incurred $4,800 in expenses.

   5. 5. Paid dividends of $800.

   Lexington Company engaged in the following transactions during Year 2:

   1. 1. Acquired an additional $1,000 cash from the issue of common stock.

   2. 2. Repaid $2,600 of its debt to the bank.

   3. 3. Earned revenues, $9,000.

   4. 4. Incurred expenses of $5,500.

   5. 5. Paid dividends of $1,280.

   The amount of total assets on Lexington's balance sheet at the end of Year 1 was:

   		$11,000.
   		$12,000.
   		$1,600.
   		$7,600.

Answer rating: 100% (QA)

The amount of retained earnings on Lexingtons balance sheet at the end of Year 1 ... View the full answer