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Oxygen Co. is incorporated at the beginning of this

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Problem 13-1A 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.

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?

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