Lexington Company Engaged in the Following Transactions During Year 1

question 139

Multiple Choice

Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions.) Acquired $4,100 cash from issuing common stock.Borrowed $2,750 from a bank.Earned $3,650 of revenues.Incurred $2,510 in expenses.Paid dividends of $510.
Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions.)
Acquired an additional $1,050 cash from the issue of common stock.Repaid $1,685 of its debt to the bank.Earned revenues, $5,050.Incurred expenses of $2,970.Paid dividends of $1,300.
What is the amount of total assets that will be reported on Lexington's balance sheet at the end of Year 1?

• A)$3,910
• B)$1,350
• C)$7,540
• D)$7,480

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Definitions:

Empirically Derived

Developed or derived from observational and experimental data rather than theory or pure logic.

Discriminate Between Groups

The act of making distinctions or differentiating between different groups based on characteristics such as race, gender, or other criteria.

Introverted

A trait in someone's personality that prioritizes inner sensations rather than influences from the outside environment.

Behavioral Tendencies

Behavioral tendencies refer to predictable patterns of behavior and reaction that individuals typically exhibit.