Kinkaid Co. is incorporated at the beginning of this year and engages in a numbe
ID: 2537563 • Letter: K
Question
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.
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?
How many shares of common stock are outstanding at year-end? What is the amount of minimum legal capital (based on par value) at year-end? What is the total paid-in capital at year-end?
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?
General Journal Debit Credit a. Cash 280,000 Common Stock, $25 Par Value 230,000 Paid-In Capital in Excess of Par Value, Common Stock 50,000 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 18,000 Building 82,400 Notes Payable 59,900 Common Stock, $25 Par Value 54,000 Paid-In Capital in Excess of Par Value, Common Stock 30,000 d. Cash 134,000 Common Stock, $25 Par Value 80,000 Paid-In Capital in Excess of Par Value, Common Stock 54,000Explanation / Answer
2) Number of outstanding shares issued in (a) 9,200 issued in (b) 5,160 issued in © 2,160 issued in (d) 3,200 total 19,720 answer 3) minimum legal capital = outstanding shares*par value per share 19720*25 493000 answer 4) total paid in capital from common stockholders from transaction (a) 280,000 From transaction (b) 190,000 From transaction © 84,000 from transaction (d) 134,000 total paid in capital. 688,000 answer 5) Book value per common share choose numerator / Choose denominator = book value per CS total stocholders outstanding shares equity 791,000 / 19,720 = 40.11
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.