Lerner Company Had the Following Transactions in 2013, Its First

question 25

Essay

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.
The company charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock.
Please provide the stockholders' equity section of the balance sheet at December 31, 2013. Include information on par values, and the number of shares authorized and issued, where necessary. No subtotals are needed for total paid-in capital, but please show total stockholders' equity on the bottom line.
$$\begin{array} { | l | l | l | l | l | } \hline \text { Account } & \text { Par value info } & \text { Shares authorized } & \text { Shares issued } & \text { Balance } \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline\end{array}$$

---

Definitions:

Trade Barriers

Measures implemented by governments to regulate or limit international trade for various purposes, such as protecting domestic industries or stimulating local economies.

Medium Of Exchange

An intermediary instrument used to facilitate the sale, purchase, or trade of goods and services by eliminating the need for a coincidence of wants in barter transactions.

Poverty Alleviation

Refers to strategies and initiatives aimed at reducing the number of people living in poverty.

Economic Wellbeing

A measurement of how well individuals and societies can fulfill their needs and wants, often associated with income, employment, and quality of life.