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 97,000 shares of $5 par common stock. During 2016, Roberto had the following transactions relating to shareholders' equity: Issued 9,500 shares of common stock at $6.80 per share. Issued 20,200 shares of common stock at $8.80 per share. Reported a net income of $104,000. Paid dividends of $54,000. Purchased 3,700 shares of treasury stock at $10.80 (part of the 20,200 shares issued at $8.80). What is total shareholders' equity at the end of 2016?

Explanation / Answer

total shareholders' equity at the end of 2016 is:

Common Stock - Authorised 97000 at par $5 $485000 - issued 9500 at par $5 $47500 - issued 20200 at par $5 $101000 $148500 - Paid in Capital in excess of par $ 93860 Retained Earnings $104000 Less: Dividend paid (54000) Less: Treasury Stock acquired (39960) $ 10040 Total Shareholders' Equity $252400

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