Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions cash transactions.) 1) Acquired $4,500 cash from issuing common stock 2) Borrowed $2,950 from a barik 3) Earned $3,850 of revenues. 4) Incurred $2,550 in expenses 5) Paid dividends of $550 Lexington Company engaged in the following transactions during Year 2 1) Acquired an additional $1,250 cash from the issue of common stock 2) Repaid $1,825 of its debt to the berik 3) Earned revenues, $5,250 4) Incurred expenses of $3,050 5) Paid dividends of $1,540, The amount of retained earnings on Lexington's balance sheet at the end of Year 1 was