[The Following Information Applies to the Questions Displayed Below

Multiple Choice

[The following information applies to the questions displayed below.]

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

Acquired $6,000 cash from issuing common stock.
Borrowed $4,400 from a bank.
Earned $6,200 of revenues.
Incurred $4,800 in expenses.
Paid dividends of $800.

Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions)

Acquired an additional $1,000 cash from the issue of common stock.
Repaid $2,600 of its debt to the bank.
Earned revenues, $9,000.
Incurred expenses of $5,500.
Paid dividends of $1,280.

-What was the amount of retained earnings that will be reported on Lexington's balance sheet at the end of Year 1?

A) $6,200
B) $5,400
C) $1,400
D) $600