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Stockholders' equity transactions

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 ______________

Solution Preview

1. The number of shares outstanding can be calculated using the balance in the common stock account. The amount in the common stock account would be number of shares X $25 par value. Total ...

Solution Summary

The solution explains some questions relating to stockholders' equity transactions

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