Nilson Company is incorporated at the beginning of this year and engages in a number of transactions.

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,0001 ,500Paid-In Capital in Excess of58,500b. Organization Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000500Paid-In Capital in Excess of1 9,500c. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,650 Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2,5003,1 50400Paid-In Capital in Excess of1 9,600d. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000600Paid-In Capital in Excess of29,400Required 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 $141,500?Check (2) 3,000 shares(3) $3,000(4) $1 30,000

Answer1. Explain the transaction(s) underlying each journal entry (a) through (d). a) 1,500 shares have been issued of par value of $1 at $40 for cash.b) 500 shares have been issued of par value…

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