Nilson 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 first year of operations.
a. Cash. 60,000
Common stock, $1 Par Value.. 1,500
Paid-In Capital in Excess of
Par Value, Common Stock... 58,000
b. Organization Expenses.. 20,000
Common stock, $1 Par Value.. 500
Paid-In Capital in Excess of
Par Value, Common Stock... 19,500
c. Cash.. 6,650
Accounts Receivable. 4,000
Building.. 12,500
Notes Payable.. 3,150
Common Stock, $1 Par Value.. 400
Paid-In Capital in Excess of
Par Value, Common Stock.. 19,600
d. Cash. 30,000
Common Stock, $1 Par Value.. 600
Paid-In Capital Excess of
Par Value, Common Stock 29,400
1. Explain the transaction(s) underlying each journal entry (a) through (d).
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 $141,500?