Kinkaid 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.

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 $695,000?

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300,000 Common Stock, $25 Par Value Paid-In Capital in Excess of 250,000 Par Value. Common Stock. 50,000 Common Stock, $25 Par Value Paid-In Capital in Excess of 125,000 25,000 .43,000 15.000 c. Cash Accounts Receivable Building rr 81.500 59,500 50,000 Common Stock, $25 Par Value Paid-In Capital in Excess of Par Value, Common Stock. .. 30,000 d. Cash 120,000 Common Stock, $25 Par Value Paid-In Capital in Excess of 75,000 Par Value, Common Stock. . . 45,000