Roberto Designers was organized on January 1, 2021. The firm was authorized to issue 150,000 shares of $5 par value common stock. During 2021, Roberto had the following transactions relating to stockholders' equity:

Issued 15,000 shares of common stock at $7 per share.

Issued 30,000 shares of common stock at $8 per share.

Reported a net income of $150,000.

Paid dividends of $75,000.

Purchased 3,000 shares of treasury stock at $10 (part of the 30,000 shares issued at $8).

What is total stockholders' equity at the end of 2021?

Multiple Choice

• $390,000.
• $420,000.
• $885,000.
• $735,000.

A company issued 1,200 shares of $5 par value preferred stock for $6 per share. What is true about the journal entry to record the issuance?

Multiple Choice

• Debit Preferred Stock $7,200
• Credit Additional Paid-In Capital $1,200
• Credit Preferred Stock $7,200
• Credit Cash $7,200