Question

actions. The follow- PROBLEM SET A Kinkaid Co. was incorporated at the beginning of this year and had a number of transactions. The ing journal entries impacted its stockholders' equity during its first year of operations. 300,000 Problem 13-1A Stockholders' equity transactions and analysis P1 A4 250,000 50,000 Cash. Common Stock, $25 Par Value.. Paid-In Capital in Excess of Par Value, Common Stock... Organization Expenses .... Common Stock, $25 Par Value .... Paid-In Capital in Excess of Par Value, Common Stock........ 150,000 125,000 25,000 Cash .. 43,000 15,000 81,500 Accounts Receivable .. Building. Notes Payable. Common Stock, $25 Par Value.. Paid-In Capital in Excess of Par Value, Common Stock 59,500 50,000 30,000 120,000 Cash Common Stock, $25 Par Value. Paid-In Capital in Excess of Par Value, Common Stock 75,000 45,000 Check (2) 20,000 shares (3) $650,000 Required 1. Explain the transaction(s) underlying each journal entry (a) through (d). 2. How many shares of common stock are outstanding at year-end? 3. What is the total paid-in capital at year-end? 4. What is the book value per share of the common stock at year-end if total paid-in capital plus retaine earnings equals $695,000?

1, 2, 3 and 4 please

Answer 1

Solution:

1.)

a.) Issued 10,000 shares of common stock for $30 per share.

b.) Issued 5,000 shares of common stock in exchange for services rendered for corporate organization.

c.) Issued 2000 shares of common stock and a note payable at $ 59,500 in exchange offer $43,000 cash.

d.) Issued 3000 of common stock for cash $120,000 at 40 per share.

2.) Number of outstanding shares:

Issued in (a)	10,000
Issued in (b)	5,000
Issued in (c)	2,000
Issued in (d)	3,000
Total	20,000

3.)

Total paid - in capital from common Stockholders:

From transaction (a)	$300,000
From transaction (b)	$150,000
From transaction (c)	$80,000
From transaction (d)	$120,000
Total paid - in capital	$650,000

4.)

Book value per common stock:

Total stockholders' equity (given)	$695,000
Outstanding shares (from part 2)	20,000
Book value per common share	$34.75($695,000/20,000)