Question
Problem 11-1A Stockholders' equity transactions and analysis LO C2, P1 Kinkaid Co. is incorporated at the beginning of this year and engages in a number
Problem 11-1A Stockholders' equity transactions and analysis LO C2, P1
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 | 290,000 | |
Common Stock, $25 Par Value | 230,000 | ||
Paid-In Capital in Excess of Par Value, Common Stock | 60,000 | ||
b. | Organization Expenses | 150,000 | |
Common Stock, $25 Par Value | 128,000 | ||
Paid-In Capital in Excess of Par Value, Common Stock | 22,000 | ||
c. | Cash | 44,500 | |
Accounts Receivable | 17,500 | ||
Building | 82,100 | ||
Notes Payable | 59,600 | ||
Common Stock, $25 Par Value | 54,500 | ||
Paid-In Capital in Excess of Par Value, Common Stock | 30,000 | ||
d. | Cash | 123,000 | |
Common Stock, $25 Par Value | 78,000 | ||
Paid-In Capital in Excess of Par Value, Common Stock | 45,000 | ||
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 $796,000?
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