Use the following information to answer questions
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)$11,000.
B)$12,000.
C)$1,600.
D)$7,600.

Question

Use the following information to answer questions 
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)$11,000.
B)$12,000.
C)$1,600.
D)$7,600.

Quizplus · Accepted Answer

Total assets at the end of 2015 are calculated as follows: $6,000 (from issuing common stock) + $4,400 (borrowed from the bank) + $6,200 (revenues) - $4,800 (expenses) - $800 (dividends) = $11,000.

Use the Following Information to Answer Questions