Problem - 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
Par Value, Common Stock......... 25,000
b. Organization Expenses.................... 75,000
Common Stock, $25 Par Value.... 62,500
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?