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Question: lexington company engaged in the following transactions during year 1...

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Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions.) Acquired $4,900 cash from issuing common stock. Borrowed $3,150 from a bank. Earned $4,050 of revenues. Incurred $2,590 in expenses. Paid dividends of $590. Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions.) Acquired an additional $1,450 cash from the issue of common stock. Repaid $1,965 of its debt to the bank. Earned revenues, $5,450. Incurred expenses of $3,130. Paid dividends of $1,780. What was the amount of liabilities on Lexington's balance sheet at the end of Year 2? Multiple Choice $1,190. $1,450. ($1,965). $1,185.

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