3:28 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: