Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions.) 1. Acquired $3900 cash from issuing common stock. 2. Borrowed $2650 from a bank. 3. Earned $3550 of revenues. 4. Incurred $2490 in expenses. 5. Paid dividends of $490. Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions.) 1. Acquired an additional $950 cash from the issue of common stock. 2. Repaid $1615 of its debt to the bank. 3. Earned revenues, $4950. 4. Incurred expenses of $2930. 5. Paid dividends of $1180. What was the amount of retained earnings that will be reported on Lexington's balance sheet at the end of Year 1?
A. $1060.
B. $570.
C. $3550.
D. $3060.
Answer: B
You might also like to view...
Leverage is
a. the ability to earn a satisfactory return on the investments in the business. b. the proportion of debt to stockholders' equity. c. the ability to pay current debts when they come due. d. also called profit margin.
The proposals that either meet company strategic goals or produce the minimum rate of return set by management will receive serious review in the preliminary screen process
Indicate whether the statement is true or false
A recognition of the need to change personal attitudes and habits regarding the allocation of time is known as the principle of desire.
Answer the following statement true (T) or false (F)
Which of the following is not a primary source of financing for entrepreneurial start-ups?
A. private investors B. investments by family and friends C. public equity D. personal savings