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 Credit a. General Journal Cash Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock Debit 270,000 240, eee 30,000 b. 190,000 Organization Expenses Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 126,000 64,000 45,000 16, eee 82,200 Cash Accounts Receivable Building Notes Payable Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock Cash Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock 59,689 53,60e 3e, eae d. 146.000 78,000 68. De

Answer 1

2)	Number of outstanding shares
	issued in (a)			9,600
	issued in (b)			5,040
	issued in ©			2,144
	issued in (d)			3,120
	total			19,904	answer
3)	minimum legal capital = outstanding shares*par value per share
			19904*25
			497600	answer
4)	total paid in capital from common stockholders
	from transaction (a)			270,000
	From transaction (b)			190,000
	From transaction ©			83,600
	from transaction (d)			146,000
	total paid in capital.			689,600	answer
5)		Book value per common share
	choose numerator		/	Choose denominator			=	book value per CS
	total stocholders			outstanding shares
	equity
	782,000		/	19,904			=	39.29