Question

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. a. Debit 280, eee Cash Common stock, 525 Par value Paid-In Capital in Excess of Par value, Common Stock 250,000 30,000 b. 170,000 Organization Expenses common stock, 525 Par Value Paid In Capital in Excess of Par value, Common Stock 126,000 44,000 40,000 19,500 82,700 Cash Accounts Receivable Building Notes Payable Common Stock, $25 Par Value Paid-In Capital in excess of Par value, comon stock 60,000 56,200 30,000 142,00 Cash Common stock, $25 Par value Paid In Capital in Excess of Par value, common stock 79.000 63,000 Required: 2. How many shares of common stock are outstanding at year-end? 3. What is the amount of minimum legal capital (based on per value) at year-end? 4. What is the total paid in capital t year-end? 5. What is the book value per share of the common stock at year-end if total poid-in capital plus retained earnings equals $787,000?

Answer 1

2
Number of outsanding shares	20448	=(250000+126000+56200+79000)/25
3
Minimum legal capital	511200	=20448*25
4
Total paid-in Capital	678200	=511200+30000+44000+30000+63000
5
Book value per common share
Choose Numerator	/	Choose Denominator	=	Book value per common share
Stockholders' Equity applicable to Common shares	/	Number of common shares outstanding	=	Book value per common share
787000	/	20448	=	38.49