Question: Lehmann Corp has the following stockholders equity information Lehmann s charter

Lehmann Corp. has the following stockholders’ equity information: Lehmann’s charter authorizes the company to issue 15,000 shares of 6% preferred stock with par value of $95 and 725,000 shares of no-par common stock. The company issued 2,130 shares of the preferred stock at $95 per share. It issued 102,600 shares of the common stock for a total of $629,000. The company’s retained earnings balance at the beginning of 2014 was $78,000, and net income for the year was $135,000. During 2014, Lehmann declared the specified dividend on preferred and a $0.90 per-share dividend on common. Preferred dividends for 2013 were in arrears.

Prepare the stockholders’ equity section of Lehmann Corp.’s balance sheet at December 31, 2014. Show the computation of all amounts. Journal entries are not required.

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  • CreatedJuly 25, 2014
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