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

1) Acquired $3,200 cash from issuing common stock. 2) Borrowed $2,300 from a bank. 3) Earned $3,200 of revenues. 4) Incurred $2,420 in expenses. 5) Paid dividends of $420.

Lexington Company engaged in the following transactions during Year 2:

1) Acquired an additional $600 cash from the issue of common stock. 2) Repaid $1,370 of its debt to the bank. 3) Earned revenues, $4,600. 4) Incurred expenses of $2,790. 5) Paid dividends of $760. T

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

Multiple Choice

a) $6,280.

b) $900.

c) $3,820.

d) $5,860.