1)

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:

1. issued stock for $64,000
2. borrowed $37,000 from its bank
3. provided consulting services for $63,000 cash
4. paid back $27,000 of the bank loan
5. paid rent expense for $15,000
6. purchased equipment for $24,000 cash
7. paid $4,200 dividends to stockholders
8. paid employees' salaries of $33,000

What is Yowell's notes payable balance at the end of Year 1?

a) $0

b) $27,000

c) $37,000

d) $10,000

2)

Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)

1. Acquired $3,300 cash from issuing common stock.
2. Borrowed $2,350 from a bank.
3. Earned $3,250 of revenues.
4. Incurred $2,430 in expenses.
5. Paid dividends of $430.

Lexington Company engaged in the following transactions during Year 2:

1. Acquired an additional $650 cash from the issue of common stock.
2. Repaid $1,405 of its debt to the bank.
3. Earned revenues, $4,650.
4. Incurred expenses of $2,810.
5. Paid dividends of $820.

The amount of total assets on Lexington's balance sheet at the end of Year 1 was:

a) $950.

b) $6,040.

c) $6,420.

d) $3,830.