Problem - 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.

a. Cash................................................................ 60,000

Common stock, $1 Par Value................. 1,500

Paid-In Capital in Excess of

Par Value, Common Stock..................... 58,000

b. Organization Expenses................................ 20,000

Common stock, $1 Par Value................. 500

Paid-In Capital in Excess of

Par Value, Common Stock..................... 19,500

c. Cash................................................................. 6,650

Accounts Receivable........................................ 4,000

Building.............................................................. 12,500

Notes Payable................................... 3,150

Common Stock, $1 Par Value........ 450

Paid-In Capital in Excess of

Par Value, Common Stock........... 19,600

d. Cash................................................................ 30,000

Common Stock, $1 Par Value................. 600

Paid-In Capital Excess of

Par Value, Common Stock............ 29,400

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 equal $141,500?