Roberto designers was organized on January 1,2021. The firm was authorized to issue 100,00 shares of $5 par value common stock. During 2021, Roberto had the following transactions relating to stockholder's equity:
Issued 10,000 shares of common stock at $7 per share.
Issued 20,000 shares of common stock at $8 per share.
Reported a net income of $100,000.
Paid dividends of $50,000.
Purchased 3,000 shares of treasury stock at $10 (part of the 20,000 shares issued at $8).
A) $270,000
B) $200,000
C) $300,000
D) $250,000

Respuesta :

Answer: the correct answer is D) $250,000

Explanation:

Answers

transactions relating to stockholder's equity

Issued shares 10,000* $7 = $70,000

Issued shares 20,000*$8   = $160,000

net income                            = $100,000

                                                --------------  

Sub Total                                 $330,000  

Debts                              

50,000 dividend                       ($50,000)

3,000 *$10 treasury stock       ($30,000)    

                                                   --------------  

Sub Total                                   ($80,000)

Total   $330,000-$80,000 =  $250,000                                    

Stockholders' equity refers to the assets left over in the business once all the debts have been paid.

What do you mean by Stockholder equity?

Stockholders' equity is the value of assets remaining in a business after all liabilities have been settled.

Calculation of  stockholder's equity:

Issued shares 10,000* $7               $70,000

Issued shares 20,000*$8              $160,000

Net income                                       $100,000

                                 

Total                                                                              $330,000  

Less: Adjustments - Debts                        

50,000 Paid dividend                        ($50,000)

3,000 *$10 treasury stock                  ($30,000)    

                                               

Total                                                                                 ($80,000)

Total          ($330,000-$80,000)                                   $250,000  

Thus, The correct answer is D) $250,000.

To learn more about Stockholder's equity, refer:

https://brainly.com/question/14032844