Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Is there a clear hierarchy of points in my outline?

Answered: 1 week ago