Question
During 2020, Fascom Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value
During 2020, Fascom Inc. had several transactions relating to common stock.
January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10 per share, fair value $9 per share). February 17: Distributed the property dividend. April 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. The fair value of the stock was $4 on this date. July 18: Declared and distributed a 3% stock dividend on outstanding common stock. The fair value is $5 per share. December 1: Declared 8% cash dividend on the preferred shares. December 20: Paid the cash dividend.
Fill in the blank in the following table to help the company to prepare for its stockholders' equity section. Record the effects of each transaction on equity accounts in the table. Use negative sign for balance decrease.
Jan.1, 2020 Jan 1, 2020 property dividend stock split 3% stock dividend Preferred dividend Common stock, $1 par, 250,000 shares issued Preferred stock, $100 par, 10,000 shares issued and outstanding 1,000,000 Paid-in capital-excess of par, common 500,000 che super $250,000 hares sued 1.000.00 1.exces of 500.000 excess of 20.00 ned earnings 2.000.000 stock, at cost. 25,000 Paid-in capital-excess of par, preferred 100,000 Retained earnings 2,000,000 Treasury stock, at cost, 5,000 shares Total stockholders' equity 3,825,000Step by Step Solution
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