Problem 13-1A Stockholders\' equity transactions and analysis LO C2, P1 Kinkaid
ID: 2537665 • Letter: P
Question
Problem 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 $785,000?
Complete this question by entering your answers in the tabs below.
Req 2 to 4
Req 5
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?
Complete this question by entering your answers in the tabs below.
Req 2 to 4
Req 5
What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $785,000?
General Journal Debit Credit a. Cash 300,000 Common Stock, $25 Par Value 230,000 Paid-In Capital in Excess of Par Value, Common Stock 70,000 b. Organization Expenses 180,000 Common Stock, $25 Par Value 127,000 Paid-In Capital in Excess of Par Value, Common Stock 53,000 c. Cash 45,000 Accounts Receivable 20,000 Building 81,800 Notes Payable 59,800 Common Stock, $25 Par Value 57,000 Paid-In Capital in Excess of Par Value, Common Stock 30,000 d. Cash 142,000 Common Stock, $25 Par Value 76,000 Paid-In Capital in Excess of Par Value, Common Stock 66,000Explanation / Answer
Number of outstanding shares
=(230,000+127,000+57,000+76,000)/25
=19600
Minimum legal capital
=(230,000+127,000+57,000+76,000)
=$490000
Total paid-in capital
=$709000
Book Value per Common Share
Stockholder equity Applicable to equity holder / No of Common Share outstanding
==785,000/19600
=40.05