Question

2) Borrowed $2.800 from a bank. 3 Earned $3,700 of revenues. Lexington Company engaged in the following transactions during Year 2

Answer 1

CALUCULATION OF THE TOTAL ASSETS OF YEAR 1	Cash
Acquired cash by issuing of Stock	$                        4,200
Add: Borowwing from the bank	$                        2,800
Add: Earning from Revenue	$                        3,700
Less: Expenses	$                      -2,520
Less: Paid Dividends	$                          -520
Total	$                        7,660
Answer = The amount of total assets at = Option 2 = $ 7,660
CALUCULATION OF THE TOTAL ASSETS OF YEAR 2	Cash
Acquired Cash by issuing the Issuing of common stock	$                        1,100
Less: Repaid of bank debts	$                      -1,720
Ad: Earning Revenue	$                        5,100
Less: Incurred Expenses	$                      -2,990
Less: Paid Dividends	$                      -1,360
Total	$                            130
Answer = Total Assets increased in year 2 = $ 130