Lerner Company Had the Following Transactions in 2013, Its First

question 134

Multiple Choice

Lerner Company had the following transactions in 2013, its first year of operations.

• Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00
Per share.
• Issued 1,000 shares of $100 par value preferred stock. Shares were issued at par.
• Earned net income of $35,000.
• Paid no dividends.

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At the end of 2013, what is the total amount of Stockholders' equity?

• A) $415,000
• B) $120,000
• C) $260,000
• D) $380,000

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Definitions:

Antecedent

A word, phrase, or clause that is represented by another word or expression (such as a pronoun).

Semicolon

A punctuation mark (;) used to connect independent clauses in a sentence or to separate items in a complex list.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Clean Energy

Renewable and non-polluting energy sources, such as wind, solar, and hydroelectric power, that minimize environmental impact.