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?

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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