Oxygen 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$347,500?

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a. 150,000 Common Stock, $25 Par Value. Paid-In Capital in Excess of 25,000 25,000 75,000 Common Stock, $25 Par Value. Paid-In Capital in Excess of 62.500 12,500 Cash... Accounts Receivable...c. Building 21,500 7.500 30.000 C. Notes Payable Common Stock, $25 Par Value. Paid-In Capital in Excess of 19,.000 25,000 15,000 d. Cash 60,000 37.500 Common Stock, $25 Par Value...w.... Paid-In Capital in Excess of Par Value, Common Stock . . 22,500 . . .