Kinkaid 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. general journal debit credit a. cash 300,000 common stock, $25 par value 250,000 paid-in capital in excess of par value, common stock 50,000 b. organization expenses 150,000 common stock, $25 par value 125,000 paid-in capital in excess of par value, common stock 25,000 c. cash 43,000 accounts receivable 15,000 building 81,500 notes payable 59,500 common stock, $25 par value 50,000 paid-in capital in excess of par value, common stock 30,000 d. cash 120,000 common stock, $25 par value 75,000 paid-in capital in excess of par value, common stock 45,000 required: 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 $695,000?

Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.