Question

Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $4,300 cash from issuing common stock. 2) Borrowed $2,850 from a bank. 3) Earned $3,750 of revenues. 4) Incurred $2,530 in expenses. 5) Paid dividends of $530. Lexington Company engaged in the following transactions during Year 2: 1) Acquired an additional $1,150 cash from the issue of common stock. 2) Repaid $1,755 of its debt to the bank. 3) Earned revenues, $5,150. 4) Incurred expenses of $3,010. 5) Paid dividends of $1,420. The amount of total assets on Lexington's balance sheet at the end of Year 1 was:

Answer 1

Total assets at the end of year 1 = 4,300+2,850+3,750-2,530-530 = $7,840 Comment if you face any issues