Lexington Company Engaged in the Following Transactions During Year 1

question 79

Multiple Choice

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

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

---

Definitions:

Unconscious Processing

Mental processes that occur without conscious awareness, influencing perceptions, thoughts, and behaviors.

Fast and Effortless

Activities or processes that are completed quickly and with minimal mental or physical exertion.

Mind-Body Problem

The difficulty in understanding how the mind and body influence each other—so that physical events can cause mental events, and so that mental events can cause physical ones.

Descartes

A French philosopher, mathematician, and scientist whose work laid the foundation for much of modern philosophy, especially in regards to dualism and the relationship between the mind and body.