Reference no: EM131777731
Problem - Keshena 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............................................................ 320,000
Common Stock, $25 per Value... ................ 250,000
Paid-In Capital in Excess of par Value, Common Stock................... 70,000
b. Organization Expenses............................ 160,000
Common Stock, $25 Par Value .................... 125,000
Paid-In Capital in Excess of Par Value, Common Stock............... 35,000
c. Cash.............................................................. 45,500
Accounts Receivable.................................. 16,000
Building....................................................... 82,000
Notes Payable............................. 59,500
Common Stock, $ 25 Par Value... 50,000
Pain-In Capital in Excess of Par Value, Common Stock...... 34,000
d. Cash............................................................... 123,000
Common Stock, $25 Par Value........ 75,000
Paid-In Capital in Excess of Par Value, Common Stock............. 48,000
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 earning equals $785,000?