Question

In: Accounting

General Journal Debit Credit a. Cash 280,000 Common Stock, $25 Par Value 235,000 Paid-In Capital in...

General Journal Debit Credit
a. Cash 280,000
Common Stock, $25 Par Value 235,000
Paid-In Capital in Excess of Par Value, Common Stock 45,000
b. Organization Expenses 190,000
Common Stock, $25 Par Value 125,000
Paid-In Capital in Excess of Par Value, Common Stock 65,000
c. Cash 45,000
Accounts Receivable 17,000
Building 82,500
Notes Payable 59,900
Common Stock, $25 Par Value 54,600
Paid-In Capital in Excess of Par Value, Common Stock 30,000
d. Cash 149,000
Common Stock, $25 Par Value 77,000
Paid-In Capital in Excess of Par Value, Common Stock 72,000


Required:
2. How many shares of common stock are outstanding at year-end?
3. 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 $781,000?

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

What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $781,000?

Book Value per Common Share
Choose Numerator: / Choose Denominator: = Book Value per Common Share
/ = Book value per common share
/ =

Solutions

Expert Solution

Answer:
2)
Number of shares of common stock are outstanding at year-end
             =   ($ 235,000 + $ 125,000 + $ 54,600 + $ 77,000 ) / Par value of Stock
             =      $ 491,600 / $ 25
             =    19,664 Shares
Number of shares of common stock are outstanding at year-end = 19,664 Shares
3)
Amount of minimum legal capital
                    = Shares outstanding x Par value of Stock
                    = 19,664 Shares x $ 25
                    =   $ 491,600
Amount of minimum legal capital =   $ 491,600
4)
Total paid-in capital at year-end
                     = minimum legal capital + Paid-In Capital in Excess of Par Value
                     = $ 491,600 + $ 45,000 + $ 65,000 + $ 30,000 + $ 72,000
                     =    $ 703,600
Total paid-in capital at year-end =    $ 703,600
5)
Book Value per Common Share      
          =   Equity Available to Common Share holders / No of Common Shares outstanding
          =    $ 781,000 / 19,664 Shares
          =    $ 39.72 Per Share
Book Value per Common Share        =    $ 39.72 Per Share

ekkarill92 answered 2 years ago
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