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. 1.53 points General Journal Debit 270,000 Credit Cash Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 235,000 35,000 b. Or 180, 000 ganization Expenses Common Stock, $25 Par Valuc Paid-In Capital in Excess of Par Value, Common Stock 129,000 51,000 eBook 46,000 18,500 82,700 c. Cash Accounts Receivable Building Print Notes Payable Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 59,800 57,400 30,000 References d. Cash 147,000 Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 76,000 71,000 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 $784,000?

Explanation / Answer

2) Number of outstanding shares issued in (a) 9,400 issued in (b) 5,160 issued in © 2,296 issued in (d) 3,040 total 19,896 answer 3) minimum legal capital = outstanding shares*par value per share 19896*25 497400 answer 4) total paid in capital from common stockholders from transaction (a) 270,000 From transaction (b) 180,000 From transaction © 87,400 from transaction (d) 147,000 total paid in capital. 684,400 answer 5)                        Book value per common share choose numerator / Choose denominator = book value per CS total stocholders outstanding shares equity 784,000 / 19,896 = 39.40

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