Roberto Corporation was organized on January 1, 2009. The firm was authorized to

Question

Roberto Corporation was organized on January 1, 2009. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2009, Roberto had the following transactions relating to shareholders' equity:

Issued 10,000 shares of common stock at $7 per share.
Issued 20,000 shares of common stock at $8 per share.
Reported a net income of $100,000.
Paid dividends of $50,000.
Purchased 3,000 shares of treasury stock at $10 (part of the 20,000 shares issued at $8).

What is total shareholders' equity at the end of 2009?

Explanation / Answer

Ans

Details Amount Comon Stock at 7 per Share      70,000.00 Comon Stock at 8 per Share 1,60,000.00 Net Income after Divididend      50,000.00 Less Treasury shares 3000*10    -30,000.00 Total Share holders equity 2,50,000.00

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