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. General JournalDebitCredita.Cash300,000 Common Stock, $25 Par Value 250,000 Paid-In Capital in Excess of Par Value, Common Stock 50,000 b.Organization Expenses150,000 Common Stock, $25 Par Value 125,000 Paid-In Capital in Excess of Par Value, Common Stock 25,000 c.Cash43,000 Accounts Receivable15,000 Building81,500 Notes Payable 59,500 Common Stock, $25 Par Value 50,000 Paid-In Capital in Excess of Par Value, Common Stock 30,000 d.Cash120,000 Common Stock, $25 Par Value 75,000 Paid-In Capital in Excess of Par Value, Common Stock 45,000 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 $695,000?

Company means the form of business where management is separately from owner and have perpetual…

Answered: Kinkaid Co. is incorporated at the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

	General Journal	Debit	Credit
a.	Cash	300,000
	Common Stock, $25 Par Value		250,000
	Paid-In Capital in Excess of Par Value, Common Stock		50,000

b.	Organization Expenses	150,000
	Common Stock, $25 Par Value		125,000
	Paid-In Capital in Excess of Par Value, Common Stock		25,000

c.	Cash	43,000
	Accounts Receivable	15,000
	Building	81,500
	Notes Payable		59,500
	Common Stock, $25 Par Value		50,000
	Paid-In Capital in Excess of Par Value, Common Stock		30,000

d.	Cash	120,000
	Common Stock, $25 Par Value		75,000
	Paid-In Capital in Excess of Par Value, Common Stock		45,000

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 $695,000?

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