Roberto Corporation was organized on January 1, 2016. The firm was authorized to

Question

Roberto Corporation was organized on January 1, 2016. The firm was authorized to issue 80,000 shares of $5 par common stock. During 2016, Roberto had the following transaction relating to shareholder's equity:

Issued 10,400 shares of common stock at $6.20 per share.

Issued 19,400 shares of common stock at $10 per share.

Reported a net income of $99,000

Paid dividends of $42,000

Purchased 2,700 shares of treasury stock at $12 (part of the 19,400 shares issued at $10).

What is total shareholder's equity at the end of 2016?

A.) $284, 280

B.) $325,080

C.) $292,680

D.) $283,080

Please show work.

Explanation / Answer

Issued 10,400 shares of common stock at $6.20 per share. = $ 64,480

Issued 19,400 shares of common stock at $10 per share. = $ 194,000

Less:Purchased 2,700 shares of treasury stock at $12 (2700x10) = ($ 27,000)

Reported a net income of [$99,000-(2700x2)-42,000] = 51,600

Total shareholder's equity at the end of 2016 : $283,080

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.