Question

	General Journal	Debit	Credit
a.	Cash	290,000
	Common Stock, $25 Par Value		250,000
	Paid-In Capital in Excess of Par Value, Common Stock		40,000
b.	Organization Expenses	190,000
	Common Stock, $25 Par Value		130,000
	Paid-In Capital in Excess of Par Value, Common Stock		60,000
c.	Cash	44,000
	Accounts Receivable	15,500
	Building	82,500
	Notes Payable		59,700
	Common Stock, $25 Par Value		52,300
	Paid-In Capital in Excess of Par Value, Common Stock		30,000
d.	Cash	148,000
	Common Stock, $25 Par Value		79,000
	Paid-In Capital in Excess of Par Value, Common Stock		69,000

Required:
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 $788,000?

Answer 1

2) shares of common stock outstanding at year end = (250,000 + 130,000 + 52,300 +79,000) / 25

Shares of common stock outstanding at year end = $511,300 / $25

Shares of common stock outstanding = 20,452 shares

3) amount of minimum legal capital at year end = 250,000 + 130,000 + 52,300 + 79,000

amount of minimum legal capital at year end = $511,300

4) total paid in capital at year end = 250,000 + 40,000 + 130,000 + 60,000 + 52,300 + 30,000 + 79,000 + 69,000

Total paid in capital at year end = $710,300

5) book value per share of common stock = $788,000 / 20,452

Book value per share of common stock = $38.53