Nilson Company 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$141,500?

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a. CashP 60,000 Common Stock, $1 Par Value Paid-In Capital in Excess of 1,500 Par Value, Common Stock.. 58,500 b. Organization Expenses ..20,000 Common Stock, $I Par Value... Paid-In Capital in Excess of 500 Par Value, Common Stock . . .. . . . .. . 19,500 6,650 4,000 12,500 C. Accounts ReceivablePE. Notes Payable Common Stock, $I Par Value... Paid-In Capital in Excess of 3.150 400 Par Value, Common Stock. *. 19.600 d. Cash ...30,000 Common Stock, $I Par Value... Paid-In Capital in Excess of 600 Par Value, Common Stock .。..... 29.400