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:  2.  Number of outstanding shares         Issued in (a) 9,600     Issued in (b) 5,160     Issued in (c) 2,184     Issued in (d) 3,120     Total 20,064           3. Minimum legal capital =  Outstanding shares × Par value per share = 20,064 × $25 = $501,600      4. Total contributed capital from common stockholders        From transaction (a) $ 260,000     From transaction (b) 190,000     From transaction (c) 84,600     From transaction (d) 125,000        Total contributed capital $ 659,600           5. Book value per common share              Total stockholders' equity (given) $ 796,000     Outstanding shares (from Part 2) 20,064        Book value per common share $ 39.67     ($796,000 / 20,064 shares)