Concept explainers
Problem 13-1A
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 ?rst year of operations.
a. | Cash ………………………………………………………………………………… | 300,000 | |
Common Stock, $25 Par Value ………………………………………… | 250,000 | ||
Paid-In Capital Excess of Par Value, Common Stock ………….. | 50,000 | ||
b. | Organization Expenses ……………………………………………………… | 150,000 | |
Common Stock, $25 Par Value ……………………………………………. | 125,000 | ||
Paid-In Capital Excess of Par Value, Common Stock …………… | 25,000 | ||
c. | Cash ………………………………………………………………………………….. | 43,000 | |
Accounts Receivable ………………………………………………………… | 15,000 | ||
Building …………………………………………………………………………….. | 81,500 | ||
Nets Payable …………………………………………………………………….. | 59,500 | ||
Common Stock, $25 Par Value ……………………………………………. | 50,000 | ||
Paid-In Capital Excess of Par Value, Common Stock …………… | 30,000 | ||
d. | Cash ………………………………………………………………………………….. | 120,000 | |
Common Stock, $25 Par Value ……………………………………………. | 75,000 | ||
Paid-In Capital Excess of Par Value, Common Stock …………… | 45,000 |
Required
1. Explain the transaction(s) underlying each
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
Check (2) 20,000 shares
(3) $500,000
(4) $650,000
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