Lerner, Inc had the following transactions in 2017, its first year of operations
• Issued 22,000 shares of common stock. The stock has a par value of $3.00 per share and was issued at $16.00 per share.
• Issued 1,800 shares of $160 par value preferred stock at par.
• Earned net income of $37,000.
• Paid no dividends.
At the end of 2017, what is total stockholders' equity?
A) $677,000
B) $354,000
C) $286,000
D) $640,000
A .A)
Common stock (22,000 x $16 ) $352,000
Preferred stock (1,800 x $160 ) $288,000
Net income $37,000
Total stockholders' equity $677,000
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Indicate whether this statement is true or false.