Friday, 6 June 2014

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 260,000 Common Stock, $25 Par Value 240,000 Paid-In Capital in Excess of Par Value, Common Stock 20,000 b. Organization Expenses 190,000 Common Stock, $25 Par Value 129,000 Paid-In Capital in Excess of Par Value, Common Stock 61,000 c. Cash 43,500 Accounts Receivable 19,000 Building 81,700 Notes Payable 59,600 Common Stock, $25 Par Value 54,600 Paid-In Capital in Excess of Par Value, Common Stock 30,000 d. Cash 125,000 Common Stock, $25 Par Value 78,000 Paid-In Capital in Excess of Par Value, Common Stock 47,000 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?

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 260,000     
       Common Stock, $25 Par Value 240,000  
       Paid-In Capital in Excess of Par Value, Common Stock 20,000  
b.   Organization Expenses 190,000     
       Common Stock, $25 Par Value 129,000  
       Paid-In Capital in Excess of Par Value, Common Stock 61,000  
c.   Cash 43,500     
  Accounts Receivable 19,000     
  Building 81,700     
       Notes Payable 59,600  
       Common Stock, $25 Par Value 54,600  
       Paid-In Capital in Excess of Par Value, Common Stock 30,000  
d.   Cash 125,000     
       Common Stock, $25 Par Value 78,000  
       Paid-In Capital in Excess of Par Value, Common Stock 47,000  


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?


Explanation: