Lerner Company Had the Following Transactions in 2015, Its First

question 13

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 stockholders' equity?

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

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Definitions:

All-In-One

A single device that combines multiple functionalities, such as a computer that integrates the monitor, CPU, and other components.

Hard Drive

A digital information storage device that utilizes one or more swiftly rotating, rigid disks coated with a magnetic substance for data storage and retrieval.

RAM

Random Access Memory, a type of computer memory that can be accessed randomly; any byte of memory can be accessed without touching the preceding bytes.

Motherboard

The main printed circuit board (PCB) in computers and other expandable systems which houses the CPU, memory, and provides connectors for other peripherals.