[The Following Information Applies to the Questions Displayed Below

question 92

Multiple Choice

[The following information applies to the questions displayed below.]

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:

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain.

Supertaster

A person with a heightened sensitivity to tastes, especially bitter flavors, due to having more taste buds than average.

Taste Receptors

Specialized sensory cells located on the tongue that are responsible for detecting the five basic tastes: sweet, sour, salty, bitter, and umami.

Distal Stimulus

An object or event in the external world that contributes to the sensory input, ultimately perceived and interpreted by the sensory organs after processing.