Question

Kinkaid Co. was incorporated at the beginning of this year and had a number of transactions. The following journal entries impacted its stockholders' equity during its first year of operations. Credit Debit 290,000 a. General Journal Cash Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 245,000 45,000 b. 190,000 Organization Expenses Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 126,000 64,000 c. 45,000 17,000 81,500 Cash Accounts Receivable Building Notes Payable Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 59,700 53,800 30,000 d. 137,000 Cash Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 75,000 62,000

Answer 1

2.

Number of outstanding shares = ($245,000+126,000+53,800+75,000) / $25 = 19,992 Shares

3.

Total paid in capital = Common stock + Paid in capital in excess of par value

Total paid in capital = ($245,000+126,000+53,800+75,000) + ($45,000+64,000+30,000+62,000) = $700,800

4.

Book value per common share
Total Stockholder's equity	/	Number of common shares outstanding	=	Book value per common share
$793,000	/	19,992	=	$39.66