Kinkaid Co. is incorporated at the beginning of this year and engages in a numbe
ID: 2585269 • 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 stockhoiders' equity during its first year of operations General Journal Debt Cred a Cash 260 000 Common Stock $25 Par Value Pasd in Capital in Excess of Par Vaue, Common Stock 235,000 25,000 b Organization Expenses 200 000 Conmon Stock, $25 Par Vaue Pad-in Capital in Excess of Par Value Commion Stock 120000 72.000 5,000 16,000 2,500 c Cash Accounts Receivable Buildng 50 800 53,700 30 000 Notes Payable Common Stock $25 Par Value Pad in Captain Excess of Par vaueCommon Stock 147 000 d Cash Common Stock $25 Par Value Pad-In Capial in Excess of Par Velue Common Stock 79 000 68 000 Required: 2. How many shares of common stock are outstanding at year-end?Explanation / Answer
2. Number of outstanding shares: 19828
3. Minimum legal capital: $495700
Minimum legal capital = Number of common stock outstanding x Par value per share = 19828 x $25 = $495700
4. Total paid-in capital: $690700
Total paid-in capital = Common stock + Paid-in capital in excess of par value-Common stock
5. Book Value per Common Share: $39.69
Issued in Number of shares a. 9400 $235000/$25 b. 5120 $128000/$25 c. 2148 $53700/$25 d. 3160 $79000/$25 19828Related Questions
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