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		240,000
	Paid-In Capital in Excess of Par Value, Common Stock		60,000
b.	Organization Expenses	190,000
	Common Stock, $25 Par Value		127,000
	Paid-In Capital in Excess of Par Value, Common Stock		63,000
c.	Cash	43,000
	Accounts Receivable	19,000
	Building	82,300
	Notes Payable		59,900
	Common Stock, $25 Par Value		54,400
	Paid-In Capital in Excess of Par Value, Common Stock		30,000
d.	Cash	131,000
	Common Stock, $25 Par Value		77,000
	Paid-In Capital in Excess of Par Value, Common Stock		54,000

Required:
2. & 3. How many shares of common stock are outstanding at year-end? What is the total paid-in capital at year-end?
4. What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $791,000?

How many shares of common stock are outstanding at year-end? What is the total paid-in capital at year-end?

	2. Number of outstanding shares 3. Total paid-in capital

Answer 1

2)

Shares outstanding at year-end = ($240,000 + $127,000 + $54,400 + $77,000)/$25

Shares outstanding at year-end = 498,400/25

Shares outstanding at year-end = 19,936 shares

3)

Total paid in capital at year end = 498,400 + 60,000 + 63,000 + 30,000 + 54,000

Total paid in capital at year end = 705,400

4)

Book value per share = $791,000/19936

Book value per share = 39.68 per share