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
d. Cash 131,000
Common Stock, $25 ParValue
Paid-In Capital in Excess of Par Value, Common Stock 61,000
How many shares of common stock are outstanding at year-end?
Number of outstanding shares __________
What is the amount of minimum legal capital (based on par value) at year end?
Minimum legal capital ___________
What is the total paid-in capital at year end?
Total contributed capital ____________
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 ______________
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 ...
The solution explains some questions relating to stockholders' equity transactions