Lerner Company Had the Following Transactions in 2013, Its First

question 102

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 Paid-in capital?

• A) $415,000
• B) $120,000
• C) $280,000
• D) $380,000

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