$1,260.
$720.
$3,800.
$3,260.
$0 beginning balance + $3,800 revenue − $2,540 expense − $540 dividends = $720
References
Multiple Choice Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
Difficulty: 2 Medium Learning Objective: 01-10 Record
business events using a
horizontal financial statements
model.
103.
Award: 1.00 point
Lexington Company engaged in the following transactions during Year 1, its first year of operations. (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 Year 2:
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 retained earnings on Lexington's balance sheet at the end of Year 1 was:
$6,200
$5,400
$1,400
$600
$0 beginning balance + $6,200 revenue − $4,800 expense − $800 dividends = $600
References
Multiple Choice Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
Difficulty: 2 Medium Learning Objective: 01-10 Record
business events using a
horizontal financial statements
model.
104.
Award: 1.00 point
Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1) Acquired $3,500 cash from issuing common stock.
2) Borrowed $2,450 from a bank.
3) Earned $3,350 of revenues.
4) Incurred $2,450 in expenses.
5) Paid dividends of $450.
Lexington Company engaged in the following transactions during Year 2:
1) Acquired an additional $750 cash from the issue of common stock.
2) Repaid $1,475 of its debt to the bank.
3) Earned revenues, $4,750.
4) Incurred expenses of $2,850.
5) Paid dividends of $940.
Total liabilities on Lexington's balance sheet at the end of Year 1 equal:
$2,450.
$750.
($1,475).
$490.
Borrowed $2,450 from a bank.
References
Multiple Choice Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
Difficulty: 2 Medium Learning Objective: 01-10 Record
business events using a
horizontal financial statements
model.
105.
Award: 1.00 point
106.
Award: 1.00 point
Lexington Company engaged in the following transactions during Year 1, its first year of operations. (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 Year 2:
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.
Total liabilities on Lexington's balance sheet at the end of Year 1 equal:
$1,000
$4,400
($2,600)
$480
Borrowed $4,400 from a bank.
References
Multiple Choice Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
Difficulty: 2 Medium Learning Objective: 01-10 Record
business events using a
horizontal financial statements
model.
As of December 31, Year 1, Mason Company had $500 cash. During Year 2, Mason earned $1,200 of cash revenue and paid $800 of cash expenses. What is
the amount of cash that would be reported on the balance sheet at the end of Year 2?
$900.
$400.
$1,700.
$2,500.
$500 beginning balance + $1,200 revenue − $800 expenses = $900
References
Multiple Choice Learning Objective: 01-04 Show
how business events affect the
accounting equation.
Difficulty: 1 Easy Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
107.
Award: 1.00 point
108.