Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 100,000 shares of OMR 5 par common stock . During 2018, Roberto had the following transactions relating to shareholders' equity: 1. Issued 10,000 common stock at OMR 7 per share. 2. Issued 20,000 common stock at OMR 8 per share. 3. Reported a net income of OMR 100,000. 4. Paid dividends of OMR 50,000. 5. Purchased 3,000 treasury stock at OMR 10 (part of the 20,000 stock issued at OMR 8). Required • Prepare the journal entries for the above transactions. • Prepare the shareholders' equity section of Roberto's statement of financial position as of December 31, 2018

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Exercise 6.4

Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 100,000 shares of OMR 5 par common stock . During 2018, Roberto had the following transactions relating to shareholders' equity:

1. Issued 10,000 common stock at OMR 7 per share.

2. Issued 20,000 common stock at OMR 8 per share.

3. Reported a net income of OMR 100,000.

4. Paid dividends of OMR 50,000.

5. Purchased 3,000 treasury stock at OMR 10 (part of the 20,000 stock issued at OMR 8).

Required

• Prepare the journal entries for the above transactions.

• Prepare the shareholders' equity section of Roberto's statement of financial position as of December 31, 2018

 

 

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