Problem 11-1A Stockholders' equity transactions and analysis L.O. C2, C3, P1
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.
General Journal Debit Credit
a. Cash 320,000
Common Stock, $25 Par 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
Paid-In Capital in Excess of Par Value, Common Stock 34,000
d. Cash 123,000
Common Stock, $25 Par Value 75,000
Paid-In Capital in Excess of Par Value, Common Stock 48,000
Requirement 1:
How many shares of common stock are outstanding at year-end?
Number of outstanding shares
Requirement 2:
What is the amount of minimum legal capital (based on par value) at year-end? (Omit the "$" sign in your response.)
Minimum legal capital $
Requirement 3:
What is the total paid-in capital at year-end? (Omit the "$" sign in your response.)
Total paid-in capital $
Requirement 4:
What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $785,000? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Book value per common share $
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.
General Journal Debit Credit
a. Cash 320,000
Common Stock, $25 Par 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
Paid-In Capital in Excess of Par Value, Common Stock 34,000
d. Cash 123,000
Common Stock, $25 Par Value 75,000
Paid-In Capital in Excess of Par Value, Common Stock 48,000
Requirement 1:
How many shares of common stock are outstanding at year-end?
Number of outstanding shares
Requirement 2:
What is the amount of minimum legal capital (based on par value) at year-end? (Omit the "$" sign in your response.)
Minimum legal capital $
Requirement 3:
What is the total paid-in capital at year-end? (Omit the "$" sign in your response.)
Total paid-in capital $
Requirement 4:
What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $785,000? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Book value per common share $