Oxygen Co. is incorporated at the beginning of this year and engages in a number
ID: 2384729 • Letter: O
Question
Oxygen 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.a. Cash 150,000
Common Stock, $25 Par Value 125,000
Paid-In Capital in Excess of Par Value, Common Stock 25,000
b. Organization Expenses 75,000
Common Stock, $25 Par Value 62,500
Paid-In Capital in Excess of Par Value, Common Stock 12,500
c. Cash 21,500
Accounts Receivable 7,500
Building 30,000
Notes Payable 19,000
Common Stock, $25 Par Value 25,000
Paid-In Capital in Excess of Par Value, Common Stock 15,000
d. Cash 60,000
Common Stock, $25 Par Value 37,500
Paid-In Capital in Excess of Par Value, Common Stock 22,500
What is the total paid-in capital at year-end?
Please show how to figure out the answer
Explanation / Answer
(1) (a) Issued 5,000 shares of common stock for $150,000 cash. (b) Issued 2,500 shares of common stock in exchange for services rendered to organize the corporation valued at $75,000. (c) Issued 1,000 shares of common stock and a note payable for $19,000 in exchange for $21,500 cash, accounts receivable valued at $7,500, and a building valued at 30,000. (d) Issued 1,500 shares of common stock for $60,000 cash. (2) 10,000 shares (5,000 + 2,500 + 1,000 + 1,500) (3) $250,000 ($125,000 + $62,500 + $25,000 + $37,500) (4) $325,000 ($150,000 + $75,000 + $40,000 + $60,000) (5) $34.75 per common share ($347,500 / 10,000 shares)
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