Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 87,000 shares of $5 par common stock. During 2018, Roberto had the following transactions relating to shareholders' equity: Issued 10,800 shares of common stock at $5.70 per share. Issued 19,800 shares of common stock at $8.70 per share. Reported a net income of $101,000. Paid dividends of $52,000. Purchased 2,700 shares of treasury stock at $10.70 (part of the 19,800 shares issued at $8.70). What is total shareholders' equity at the end of 2018

Total shareholders equity are all monies provided by the shareholders including reserves set aside for them. The total shareholders' equity is determined as follows :

Total shareholders' equity = Common Stocks + Retained Earnings

Common Stocks Outstanding Calculation

Issued Shares (1st Issue) (10,800 x $5.70) $61,560

Issued Shares (2nd Issue) ( 19,800 × $8.70) $172,260

Repurchase ( 2,700 × $8.70) ($23,490)

Total Equity $210,330

Retained Earnings Calculation

Opening Balance $ 0

Add Profit for the Year $101,000

Less Dividends ($52,000)

Ending Balance $49,000

Therefore,

Total shareholders' equity = $210,330 + $49,000

= $259,330