roblem 13-1A Stockholders\' equity transactions and analysis LO C2, P1 Kinkaid C
ID: 2537657 • Letter: R
Question
roblem 13-1A Stockholders' equity transactions and analysis LO C2, P1
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.
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 $780,000?
How many shares of common stock are outstanding at year-end? What is the amount of minimum legal capital (based on par value) at year-end? What is the total paid-in capital at year-end?
What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $780,000?
General Journal Debit Credit a. Cash 280,000 Common Stock, $25 Par Value 225,000 Paid-In Capital in Excess of Par Value, Common Stock 55,000 b. Organization Expenses 170,000 Common Stock, $25 Par Value 127,000 Paid-In Capital in Excess of Par Value, Common Stock 43,000 c. Cash 45,000 Accounts Receivable 17,000 Building 82,500 Notes Payable 59,700 Common Stock, $25 Par Value 54,800 Paid-In Capital in Excess of Par Value, Common Stock 30,000 d. Cash 143,000 Common Stock, $25 Par Value 80,000 Paid-In Capital in Excess of Par Value, Common Stock 63,000Explanation / Answer
2 Number of outstanding shares =(225000+127000+54800+80000)/25= 19472 3 Minimum legal capital = 19472*25= $486800 4 Total paid-in capital =486800+(55000+43000+30000+63000)= $677800 5 Stockholders' equity applicable to common shares/Number of common shares outstanding = Book value per common share 780000/19472= $40.06
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