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 95,000 shares of $5 par common stock. During 2016, Roberto had the following transactions relating to shareholders' equity: Issued 9,200 shares of common stock at $6.00 per share. Issued 20,900 shares of common stock at $8.70 per share. Reported a net income of $103,000. Paid dividends of $41,000. Purchased 2,300 shares of treasury stock at $10.70 (part of the 20,900 shares issued at $8.70). What is total shareholders' equity at the end of 2016? $277,220. $274,420. $290,810. $315,420.

Explanation / Answer

Total shareholders' equity at the end of 2016 = (9200*6)+(20900*8.7)+103000-41000-(2300*10.7)= 274420

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