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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 liabilities on Lexington's 2016 balance sheet was
A)$1,000.
B)$1,800.
C)($2,600).
D)$480.

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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 liabilities on Lexington's 2016 balance sheet was
A)$1,000.
B)$1,800.
C)($2,600).
D)$480.

Quizplus · Accepted Answer

At the end of 2016, Lexington's liabilities are calculated by taking the initial borrowing of $4,400, subtracting the repayment of $2,600, resulting in $1,800 in liabilities.

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