Roberto Designers was organized on January 1, 2021. The firm was authorized to issue 190,000 shares of $4 par value common stock. During 2021, Roberto had the following transactions relating to stockholders' equity: Issued 19,000 shares of common stock at $6 per share. Issued 38,000 shares of common stock at $7 per share. Reported a net income of $190,000. Paid dividends of $95,000. Purchased 2,000 shares of treasury stock at $9 (part of the 38,000 shares issued at $7). What is total stockholders' equity at the end of 2021

Respuesta :

Answer:

Total Stock holder equity $457,000

Explanation:

The computation of the total stockholder equity is shown below:

Common stock issued (19,000 × $6) $114,000

Another common stock issue (38,000 ×  $7) $266,000

Net income $190,000

Less: Dividends - $95,000

Less: Treasury stock purchase -$18,000 (2,000 × $9)  

Total Stock holder equity $457,000

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