Question

Roberto Designers was organized on January 1, 2021. The firm was authorized to issue 100,000 shares of $5 par value common stock. During 2021, Roberto had the following transactions relating to stockholders' 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). What is the balance in the Treasury Stock account at the end of 2021

Answer 1

"$30,000" is the appropriate solution.

Step-by-step explanation:

Given:

Paid dividends,

= $50,000

Purchased shares of treasury stock,

= 3,000 (at $10)

Now,

At the end of 2021,

The balance in treasury stock account will be:

=
`Purchased \ shares \ of \ treasury \ account* 10`

=
`3000* 10`

=
`30,000` ($)