Roberto designers was organized on january 1, 2018. the firm was authorized to issue 140,000 shares of $5 par value common stock. during 2018, roberto had the following transactions relating to stockholders' equity: issued 14,000 shares of common stock at $7 per share. issued 28,000 shares of common stock at $8 per share. reported a net income of $140,000. paid dividends of $70,000. purchased 4,000 shares of treasury stock at $10 (part of the 28,000 shares issued at $8). what is total stockholders' equity at the end of 2018?

The total stockholder's equity at the end of the year will be $352,000.

Explanation:

The issue of common stock at $7/share= 14,000*$7=$98,000

The issue of common stock at $8/share= 28,000*$8=$224,000

The net income is $140,000.

The dividends paid= $70,000.

Purchase of treasury stock= 4000*$10=$40,000

The total stockholder's equity

=The issue of common stock at $7/share+The issue of common stock at $8/share+The net income-The dividends paid-Purchase of treasury stock

=$98,000+$224,000+$140,000- $70,000-$40,000

=$352,000.

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