It is an Army Model of 1894 that has been heavily buffed and badly reblued and had later Colt wood grips installed instead of the uncheckered military grips. Those guns are rather fragile and give quite a bit of trouble when subjected to use. Further, parts are scarce and few (if any) gunsmiths today understand them. That model was chambered for .38 Long Colt and should NOT be fired with .38 Special, even if the longer cartridge will fit.
RAC is Army inspector Rinaldo A. Carr; LEB is Leroy E. Briggs, another Army inspector.
K7523 is not the serial number, it is an assembly number. The serial number should be on the bottom of the grip, along with the legend:
If that number is not there, it has been removed and the gun is illegal to own.
Those guns originally had no lanyard loop, but many were updated to include one.