Lerner Company Had the Following Transactions in 2015, Its First

question 143

Multiple Choice

Lerner Company had the following transactions in 2015, 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.
At the end of 2015, 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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Definitions:

Overdraw

Occurs when an account's balance goes below zero because more money has been withdrawn from the account than was available.

Sales Receipt

A document that provides evidence of a transaction in which goods or services are purchased and paid for in full at the time of the sale.

Time of Sale

The exact moment a transaction is completed and finalized, often referring to the point when a customer makes a payment to a merchant in exchange for goods or services.

Cash

Money in the form of coins or banknotes, especially that used to pay for goods or services.