Kinkaid Co. is incorporated at the beginning of this year and engages in a numbe

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 General Journal Debit Credit a. Cash 280,000 Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 230,000 50,000 b. Organization Expenses 180,000 Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 127,000 53,000 44,500 19,000 83,000 c. Cash Accounts Receivable Building Notes Payable Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 59,800 56,700 30,000 d. Cash 121,000 Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 77,000 44,000

Explanation / Answer

2) Number of outstanding shares issued in (a) 9,200 issued in (b) 5,080 issued in © 2,268 issued in (d) 3,080 total 19,628 3) minimum legal capital = outstanding shares*par value per share 19,628*25 490700 4) total paid in capital from common stockholders from transaction (a) 280,000 From transaction (b) 180,000 From transaction © 86,700 from transaction (d) 121,000 total paid in capital. 667,700 5)                        Book value per common share choose numerator / Choose denominator = book value per CS total stocholders outstanding shares equity / 793,000 / 19,628 = 40.40

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