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:

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

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

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

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 1 year ago

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