Lexington Company engaged in the following transactions during 2015, its first y

ID: 2562005 • Letter: L

Question

Lexington Company engaged in the following transactions during 2015, its first year in operation: (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 2016:

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 2015 balance sheet was

a) $12,000.

b) $1,600.

c) $7,600.

d) $11,000.

Amount of total assets on Lexington's 2015 balance sheet = 6000+4400+6200-4800-800= 11000 Option D is correct

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