[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:

Plasma Membrane

The lipid bilayer that surrounds a cell, controlling the movement of substances in and out of the cell.

Storing Energy

The process of retaining energy produced in one form for future use, such as through chemical bonds, batteries, or other mediums.

Extracellular Fluid

Fluid outside of cells, in which bodily cells are immersed, providing a medium for the transport of substances between cells and blood vessels.

Channel Proteins

Proteins embedded in the cell membrane that allow specific ions or molecules to pass through.