Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 253,000 shares issued $ 253,000 Paid-in

On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts.
 

   
Common stock, $1 par, 253,000 shares issued$253,000
Paid-in capital–excess of par, common 506,000
Paid-in capital–excess of par, preferred 115,000
Preferred stock, $100 par, 11,500 shares outstanding 1,150,000
Retained earnings 2,300,000
Treasury stock, at cost, 5,300 shares 26,500
 

 
During 2021, Fascom Inc. had several transactions relating to common stock.
 

January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10.3 per share, fair value $9.15 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. (Fascom chose to reduce Paid-in capital—excess of par.) 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 a 50 cents per share cash dividend on the outstanding common shares.
December 20: Paid the cash dividend.


Required:
Without preparing journal entries, prepare the shareholders' equity section of Fascom's balance sheet as of December 31, 2021. Assume net income is $530,000 for 2021. (Negative amounts should be entered with a minus sign.)

Step by Step Solution

3.47 Rating (147 Votes )

There are 3 Steps involved in it

Step: 1

FASCOM Balance Sheet Partial Dec 31 2021 Preferred stock 11500 100 par Common stock ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper

1st Canadian Edition

9780132147538, 132889714, 013214753X , 978-0132889711

More Books

Students also viewed these Accounting questions

Question

Write a note on transfer policy.

Answered: 1 week ago

Question

Discuss about training and development in India?

Answered: 1 week ago

Question

Explain the various techniques of training and development.

Answered: 1 week ago

Question

Explain the various techniques of Management Development.

Answered: 1 week ago

Question

T F The term split personality refers to schizophrenia. (p. 201)

Answered: 1 week ago

Question

7.5 Evaluate the role of stress in depression.

Answered: 1 week ago