Oxygen 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. | Cash | 150,000 |
| |||
| Common Stock, $25 Par Value |
| 125,000 | |||
| Paid-In Capital in Excess of |
|
| |||
| Par Value, Common Stock |
| 25,000 | |||
b. | Organization Expenses | 75,000 |
| |||
| Common Stock, $25 Par Value |
| 62,500 | |||
| Paid-In Capital in Excess of |
|
| |||
| Par Value, Common Stock |
| 12,500 | |||
c. | Cash | 21,500 |
| |||
| Accounts Receivable | 7,500 |
| |||
| Building | 30,000 |
| |||
| Notes Payable |
| 19,000 | |||
| Common Stock, $25 Par Value |
| 25,000 | |||
| Paid-In Capital in Excess of |
|
| |||
| Par Value, Common Stock |
| 15,000 | |||
d. | Cash | 60,000 |
|
| ||
| Common Stock, $25 Par Value |
| 37,500 |
| ||
| Paid-In Capital in Excess of |
|
|
| ||
| Par Value, Common Stock |
| 22,500 |
| ||
|
|
|
|
|
|
|
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 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 $347,500?
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