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

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