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 Debit 300,000 General Journal Credit a. Cash Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 250,000 50,000 b. Organization Expenses 150,000 Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 125,000 25,000 43,000 15,000 81,500 c. Caslh Accounts Receivable Building Notes Payable Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 59,500 50,000 30,000 d. Cash 120,000 Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 75,000 45,000

Explanation / Answer

2) Number of outstanding shares issued in (a) 10,000 issued in (b) 5,000 issued in © 2,000 issued in (d) 3,000 total 20,000 answer 3) minimum legal capital = outstanding shares*par value per share 20,000*25 500000 answer 4) total paid in capital from common stockholders from transaction (a) 300,000 From transaction (b) 150,000 From transaction © 80,000 from transaction (d) 120,000 total paid in capital. 650,000 answer 5)                        Book value per common share choose numerator / Choose denominator = book value per CS total stocholders outstanding shares equity 695,000 / 20,000 = 34.75

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