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

ID: 2574717 • Letter: R

Question

Roberto Corporation was organized on January 1, 2016. The firm was authorized to issue 87,000 shares of $5 par common stock. During 2016, Roberto had the following transactions relating to shareholders' equity:

$266,840.

$318,440.

$264,440.

$293,140.

Roberto Corporation was organized on January 1, 2016. The firm was authorized to issue 87,000 shares of $5 par common stock. During 2016, Roberto had the following transactions relating to shareholders' equity:

Issued 10,200 shares of common stock at $5.20 per share. Issued 20,300 shares of common stock at $9.00 per share. Reported a net income of $108,000. Paid dividends of $54,000. Purchased 2,300 shares of treasury stock at $11.00 (part of the 20,300 shares issued at $9.00). What is total shareholders' equity at the end of 2016?

Explanation / Answer

Total shareholders' equity at the end of 2016: Total paid in capital 235740 =(10200*5.2)+(20300*9) Retained earnings 54000 =108000-54000 Less: Treasury stock -25300 =2300*11 Total shareholders' equity at the end of 2016 264440 Option 3 is correct

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