Lexington Company engaged in the following transactions during Year Lits first year of operations. (Assume anl transictions are casti transactiona.) 1) Acquired $3,800 cash from issuing common stock. 2) Borrowed $2,600 from a bank. 3) Earned 53,500 of revenues. 4) Incurred $2,480 in expenses. 5) Paid dividends of 5480 . Lexington Company engaged in the following fransactions during Yeat 2 : 1) Acquired an additional $900 cash from the issue of common stock. 2) Repaid $1,580 of ats debf to the bank: 3) Eamed revenues, $4,900. a) Incurted expenses of $2.910 5) Poid dividends of $1.20. The amount of retained earnings on Lexington's bolance sheet at the end of Yoar 1 was: Multiple Ghoice 5. 020 1540 1n,508 51020