[The Following Information Applies to the Questions Displayed Below

question 89

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 was the amount of liabilities on Lexington's balance sheet at the end of Year 2?

• A)$1,000.
• B)$1,800.
• C)($2,600).
• D)$480.

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Definitions:

Early Research

Early research refers to the initial studies or explorations into a subject or field, which lay the groundwork for future inquiry and understanding.

Leadership

The act of guiding or directing a group of people to achieve a common goal.

Cross-cultural Leadership

Leadership that understands, respects, and applies knowledge across diverse cultural norms, practices, and values.

Comparative Approach

A method that involves comparing different entities or situations to analyze similarities, differences, and outcomes.