1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vedmedyk [2.9K]
3 years ago
13

Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are

cash transactions.) Acquired $3,200 cash from issuing common stock. Borrowed $2,300 from a bank. Earned $3,200 of revenues. Incurred $2,420 in expenses. Paid dividends of $420. Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions.) Acquired an additional $600 cash from the issue of common stock. Repaid $1,370 of its debt to the bank. Earned revenues, $4,600. Incurred expenses of $2,790. Paid dividends of $760. What was the amount of retained earnings that will be reported on Lexington's balance sheet at the end of Year 1?
Business
1 answer:
worty [1.4K]3 years ago
5 0

Answer:

Retained Earnings Balance at end of Year 1 =  $360

Explanation:

First we need to determine the profit/loss for the year as part of the retained earnings calculation.

Lexington Company

Income Statement for the year ended - Year 1

Revenue Earned                                                $3,200

Less Expenses                                                  ($2,420)

Net Income / (Loss)                                               $780

Then we calculate the Retained Earnings Balance

Retained Earnings Statement

Beginning Retained Earnings Balance                  $ 0

Add Profit earned during the year                      $780

Less Dividends                                                   ($420)

Ending Retained Earnings Balance                    $360

You might be interested in
A region is in the middle of a very cold and snowy winter. As a result, hot chocolate has become more desirable, and many of the
Liula [17]

Answer:

2

Explanation:

As a result of the weather, the demand for chocolate increases. the demand curve shifts to the right. there is an increase in equilibrium price and quantity

As a result of the channels closing, the supply of imported cocoa falls. As a result, supply decreases. the supply curve shifts to the left

5 0
3 years ago
Retain the small predictable layers of risk and transfer the unpredictable catastrophic layer of risk. Does this statement promo
ELEN [110]

Answer:

Yes the statement does

Explanation:

Retaining small predictable layers of risk and transferring the unpredictable catastrophic layer of risk to a more capable body is a very good approach towards  promoting appropriate risk financing decision making, this is because

Financial risk decisions are decisions taken between alternatives i.e risks associated with business activities . it is more appropriate to take alternatives with a predictable layer of risk,that way it would be easier for the management to handle the risk associated with it, while transferring the unpredictable catastrophic layer of risk to a more capable body ,like the Insurance companies .

7 0
3 years ago
"Jordan's Ice Creams is strategically located near a university. After realizing that most of its customers, who are mostly stud
iragen [17]

Answer:

B. Broad differentiation strategy

Explanation:

Broad differentiation strategy -

It refers to the method to strategize the business or the product in a very unique and innovative manner , is referred to as broad differentiation strategy .

The method is done by trying to adapt new method to present their goods and services , add new features , tries to relate to the likes and dislikes of the consumers .

The method is very helpful for a larger company than for smaller one .

The method is helpful to increase the production of the company , and thereby the profit of the company increases .

Hence , from the given scenario of the question ,

The correct answer is B. Broad differentiation strategy .

6 0
3 years ago
Fred ran short on cash and borrowed​ $300 through a payday loan company. the company charged him a fee of​ $60 to borrow the​ $3
Ne4ueva [31]
<span>The answer is 1.43 % per day. Calculations: Formula for simple interest: I=PRT, where I=interest; P= borrowed amount; R=rate of interest in percentage; T=time for repayment hence; P=$300, I=$60, T=14 days, then R=? R={(I/PT) *100)}% per day={(60/300*14)*100}=1.43 % per day interest rate (R) that Fred was charged for the aforementioned loan was 1.43 % per day</span>
3 0
3 years ago
A certain bank assigns one unique number to each savings account. The amount of savings in each account depends on how much the
fenix001 [56]
A certain bank assigns one unique number to each savings account. The amount of savings in each account depends on how much the owner deposits into the <span>account. The interest paid on each account depends on how much money is in the account. The relation that is not a function is that "</span><span>interest paid, amount in savings account."</span> 
8 0
3 years ago
Read 2 more answers
Other questions:
  • Efficiency-wage theory suggests that paying: a) high wages might be profitable because they lower the efficiency of a firm’s wor
    15·1 answer
  • Which loan type requires you to make loan payments while you’re attending school?
    15·1 answer
  • Pharoah Company issued $530,000 of 5-year, 5% bonds at 97 on January 1, 2020. The bonds pay interest annually. Your answer is pa
    13·1 answer
  • Differentiate between economic growth and economic development ?​
    12·1 answer
  • The First National Bank of Nelsonville has no excess reserves when a new deposit of $10,000 is made. The required reserve ratio
    12·1 answer
  • For the year ended December 31, 2021, Norstar Industries reported net income of $965,000. At January 1, 2021, the company had 1,
    8·1 answer
  • The following information was taken from the records of Marigold Inc. for the year 2020: Income tax applicable to income from co
    13·1 answer
  • On December 31, Year 1, Ott Co. had investments in marketable debt securities as follows: Amotized Cost Market value Mann Co. $1
    7·1 answer
  • The long run aggregate supply curve shifts to the right given that
    13·1 answer
  • Tony and Suzie are ready to expand Great Adventures even further in 2022. Tony believes that many groups in the community (for e
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!