Concept explainers
Problem 13-1B
C2 P1
Weiss Company 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 ………………………………………………………………………………… | 120,000 | |
Common Stock, $1 Par Value ………………………………………… | 120,000 | ||
Paid-In Capital Excess of Par Value, Common Stock ………….. | 117,000 | ||
b. | Organization Expenses ……………………………………………………… | 40,000 | |
Common Stock, $1 Par Value ……………………………………………. | 1,000 | ||
Paid-In Capital Excess of Par Value, Common Stock …………… | 39,000 | ||
c. | Cash ………………………………………………………………………………….. | 13,300 | |
Accounts Receivable ………………………………………………………… | 8,000 | ||
Building …………………………………………………………………………….. | 37,000 | ||
Nets Payable …………………………………………………………………….. | 18,300 | ||
Common Stock, $1 Par Value ……………………………………………. | 800 | ||
Paid-In Capital Excess of Par Value, Common Stock …………… | 36,200 | ||
d. | Cash ………………………………………………………………………………….. | 60,000 | |
Common Stock, $1 Par Value ……………………………………………. | 1,200 | ||
Paid-In Capital Excess of Par Value, Common Stock …………… | 58,800 |
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 retained earnings equals $283,200?
Check (2) 6,000 shares
(3) $6,000
(4) $260,000
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Fundamental Accounting Principles -Hardcover
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