Report stockholders' equity
Response to the following problem:
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.