Chapter 13, Problem 1BP

Stockholders’ equity transactions and analysis

Weiss Company 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.

Required

1. 1. Explain the transaction(s) underlying each journal entry (a) through (d).
2. 2. How many shares of common stock are outstanding at year-end?

    Check    (2) 6,000 shares

1. 3. What is the amount of minimum legal capital (based on par value) at year-end?

    (3) $6,000

1. 4. What is the total paid-in capital at year-end?

    (4) $260,000

1. 5. What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $283,200?