Requirement 1-This is a new company so the shares issued in a, b, c, d transactions should equal the # o/s shares at end of year.
Requirement 3-Total Contributed Capital or Paid In Capital is the total Stock plus Paid in Capital in Excess accounts. Again, since this is a new company there are no beginning balances.
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.
General Debit Credit
a. Cash 400,000
Common Stock, $25 Par Value 330,000
Paid-In Capital in Excess of Par Value, Common Stock 70,000
b. Organization Expenses 130,000
Common Stock, $25 Par Value 97,000
Paid-In Capital in Excess of Par Value, Common Stock 33,000
c. Cash 43,500
Accounts Receivable 16,500
Building 62,600
Notes Payable 44,500
Common Stock, $25 Par Value 17,500
Paid-In Capital in Excess of Par Value, Common Stock 60,600
d. Cash 131,000
Common Stock, $25 ParValue
70,000
Paid-In Capital in Excess of Par Value, Common Stock 61,000
Requirement 1:
How many shares of common stock are outstanding at year-end?
Number of outstanding shares __________
Requirement 2:
What is the amount of minimum legal capital (based on par value) at year end?
Minimum legal capital ___________
Requirement 3:
What is the total paid-in capital at year end?
Total contributed capital ____________
Requirement 4:
What is the book value per share of the common stock at year-end if paid in capital plus retained earnings equals $698,000?
Book value per common share ______________