Lexington Company Engaged in the Following Transactions During Year 1

question 102

Multiple Choice

Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions.) Acquired $6,000 cash from issuing common stock.Borrowed $4,400 from a bank.Earned $6,200 of revenues.Incurred $4,800 in expenses.Paid dividends of $800. Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions.) Acquired an additional $1,000 cash from the issue of common stock.Repaid $2,600 of its debt to the bank.Earned revenues, $9,000.Incurred expenses of $5,500.Paid dividends of $1,280.
What is the amount of total assets that will be reported on Lexington's balance sheet at the end of Year 1?

• A)$11,000
• B)$12,000
• C)$1,600
• D)$7,600

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Definitions:

Stress Management

Techniques and strategies aimed at controlling a person's levels of stress, for the purpose of improving everyday functioning.

Cognitive Behavioral Techniques

Strategies used in cognitive behavioral therapy to change negative thought patterns and behaviors to improve psychological health.

Substance Abuse Rehabilitation

A treatment program designed to help individuals recover from dependency on drugs or alcohol, including medical and psychological care.

Student Performance Motivations

The drives or desires that influence students' dedication to their studies, affecting their academic performance.