Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions.
Question:
Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders? equity during its first year of operations.
Required
1. Explain the transaction(s) underlying each journal entry (a) through (d).
2. How many shares of common stock are outstanding at year-end?
3. What is the total paid-in capital at year-end?
4. What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $695,000?
Cash 300,000 a. Common Stock, $25 Par Value 250,000 Paid-In Capital in Excess of Par Value, Common Stock 50,000 b. Organization Expenses 150,000 Common Stock, $25 Par Value . 125,000 25,000 Paid-In Capital in Excess of Par Value, Common Stock Cash 43,000 C. Accounts Receivable 15,000 Building.. Notes Payable 81,500 59,500 Common Stock, $25 Par Value 50,000 30,000 Paid-In Capital in Excess of Par Value, Common Stock Cash 120,000 d. Common Stock, $25 Par Value 75,000 Paid-In Capital in Excess of Par Value, Common Stock . 45,000
Step by Step Answer:
Part 1 a To record sale of 10000 25000025 per share shares of 25 par value common stock for 30 30000...View the full answer
Financial Accounting Information for Decisions
ISBN: 978-1259917042
9th edition
Authors: John J. Wild
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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