Question

Kinkald 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. Credit Debit 300,000 General Journal Cash Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 240,000 60,000 170,000 Organisation Expenses Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 128,000 42,000 45,000 16,500 81,900 Cash Accounts Receivable Building Notes Payable Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 59,700 53,700 30,000 d. 130,000 Cash Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 78,000 52.000 Required: 2. How many shares of common stock are outstanding at year-end? 3. What is the amount of minimum legal capital (based on 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 $800,000 Complete this question by entering your answers in the tabs below. Reg 2 to 4 Reg 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?

Answer 1

Solutions:

2.

Common Stock	499700
Par Value	25
No of Outstanding shares	=499700/25	19988

3.

Common Stock Par Value (19988*25)	499700
Additional Paid in Capital	184000
Total Paid in Capital (Par Value + Additional Paid in Capital)	683700

4.

Minimum Legal Capital	=No. Of shares * Par Value
	=19988*25
	499700

5.

Book Value per common Share
Shareholders Equity	/ No of shares outstanding	= Book Value per Common Share
$8,00,000	/19988	=$40.02