1. 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.

	General Journal	Debit	Credit
a.	Cash	270,000
	Common Stock, $25 Par Value		240,000
	Paid-In Capital in Excess of Par Value, Common Stock		30,000
b.	Organization Expenses	180,000
	Common Stock, $25 Par Value		127,000
	Paid-In Capital in Excess of Par Value, Common Stock		53,000
c.	Cash	43,500
	Accounts Receivable	17,000
	Building	82,800
	Notes Payable		59,500
	Common Stock, $25 Par Value		53,800
	Paid-In Capital in Excess of Par Value, Common Stock		30,000
d.	Cash	120,000
	Common Stock, $25 Par Value		78,000
	Paid-In Capital in Excess of Par Value, Common Stock		42,000

Required:
2. How many shares of common stock are outstanding at year-end?
3. What is the amount of minimum legal capital (based on par value) at year-end?
4. What is the total paid-in capital at year-end?
5. What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $791,000?

2.

Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016:

Common stock—$15 par value, 100,000 shares authorized, 45,000 shares issued and outstanding	$675,000
Paid-in capital in excess of par value, common stock	60,000
Retained earnings	430,000
Total stockholders' equity	$1,165,000

In year 2017, the following transactions affected its stockholders’ equity accounts.

Jan.	1	Purchased 5,500 shares of its own stock at $15 cash per share.
Jan.	5	Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb.	28	Paid the dividend declared on January 5.
July	6	Sold 2,063 of its treasury shares at $19 cash per share.
Aug.	22	Sold 3,437 of its treasury shares at $12 cash per share.
Sept.	5	Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct.	28	Paid the dividend declared on September 5.
Dec.	31	Closed the $428,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required:
1. Prepare journal entries to record each of these transactions for 2017.
2. Prepare a statement of retained earnings for the year ended December 31, 2017.
3. Prepare the stockholders' equity section of the company’s balance sheet as of December 31, 2017.