|
a. |
Cash |
150,000 |
|
|
|
Common Stock, $25 Par Value |
|
125,000 |
|
|
Paid In Capital in Excess of Par Value, Common Stock |
|
25,000 |
|
b. |
Organization Expenses |
75,000 |
|
|
|
Common Stock, $25 Par Value |
|
62,500 |
|
|
Paid In Capital in Excess of Par Value, Common Stock |
|
12,500 |
|
c. |
Cash |
21,500 |
|
|
|
Accounts Receivable |
7,500 |
|
|
|
Building |
30,000 |
|
|
|
Notes Payable |
|
19,000 |
|
|
Common Stock, $25 Par Value |
|
25,000 |
|
|
Paid In Capital in Excess of Par Value, Common Stock |
|
15,000 |
|
d. |
Cash |
60,000 |
|
|
|
Common Stock, $25 Par Value |
|
37,500 |
|
|
Paid In Capital in Excess of Par Value, Common Stock |
|
22,500 |
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 earnings equals $347,500?