Question: 34 Lexington Company engaged in the following transactions during Year 1, its first year in operation: - Acquired $3,600 cash from issuing common stock. - Borrowed $2,500 from a bank. Earned $3,400 in revenues. - Incurred $2,460 in expenses. - Paid dividends of $460. Lexington Company engaged in the following transactions during Year 2: - Acquired an additional $800 cash from the issue of common stock. - Repaid $1,510 of its debt to the bank. Earned revenues, $4,800. - Incurred expenses of $2,870. - Paid dividends of $1,000. What was the amount of liabilities on Lexington's balance sheet at the end of Year 2? Consider the following select information from the December 31, 2016 balance sheet and income statement for the year ended of Firm B. Determine the Paid-in capital recorded on 12/31/16. Firm B Total assets, 12/31/16 Total liabilities, 12/31/16 $ 5,42,000 1,36,000 Retained earnings, 12/31/16 3,07,000 Net income for 2016 74,000 Dividends declared and paid during 2016 27,000 On January 1, 2018, Baltimore Company issued $150,000 face value, 7%, 10-year bonds at 102. Interest is paid annually on January 1. Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the interest expense for the 2018 fiscal year.
Question: 34 Lexington Company engaged in the following transactions during Year 1, its first year in operation: - Acquired $3,600 cash from issuing common stock. - Borrowed $2,500 from a bank. Earned $3,400 in revenues. - Incurred $2,460 in expenses. - Paid dividends of $460. Lexington Company engaged in the following transactions during Year 2: - Acquired an additional $800 cash from the issue of common stock. - Repaid $1,510 of its debt to the bank. Earned revenues, $4,800. - Incurred expenses of $2,870. - Paid dividends of $1,000. What was the amount of liabilities on Lexington's balance sheet at the end of Year 2? Consider the following select information from the December 31, 2016 balance sheet and income statement for the year ended of Firm B. Determine the Paid-in capital recorded on 12/31/16. Firm B Total assets, 12/31/16 Total liabilities, 12/31/16 $ 5,42,000 1,36,000 Retained earnings, 12/31/16 3,07,000 Net income for 2016 74,000 Dividends declared and paid during 2016 27,000 On January 1, 2018, Baltimore Company issued $150,000 face value, 7%, 10-year bonds at 102. Interest is paid annually on January 1. Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the interest expense for the 2018 fiscal year.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter11: Accounting For Transactions Using A General Journal
Section: Chapter Questions
Problem 3AP
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Transcribed Image Text:Question: 34
Lexington Company engaged in the following transactions
during Year 1, its first year in operation:
- Acquired $3,600 cash from issuing common stock.
- Borrowed $2,500 from a bank.
Earned $3,400 in revenues.
- Incurred $2,460 in expenses.
- Paid dividends of $460.
Lexington Company engaged in the following transactions
during Year 2:
- Acquired an additional $800 cash from the issue of
common stock.
- Repaid $1,510 of its debt to the bank.
Earned revenues, $4,800.
- Incurred expenses of $2,870.
- Paid dividends of $1,000.
What was the amount of liabilities on Lexington's balance
sheet at the end of Year 2?
Consider the following select information from the
December 31, 2016 balance sheet and income statement
for the year ended of Firm B. Determine the Paid-in capital
recorded on 12/31/16.
Firm B
Total assets, 12/31/16
Total liabilities, 12/31/16
$ 5,42,000
1,36,000
Retained earnings, 12/31/16
3,07,000
Net income for 2016
74,000
Dividends declared and paid during 2016
27,000
On January 1, 2018, Baltimore Company issued $150,000
face value, 7%, 10-year bonds at 102. Interest is paid
annually on January 1. Baltimore uses the straight-line
method for amortization.
Use this information to determine the dollar value of the
interest expense for the 2018 fiscal year.
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