Question
On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 260,000 shares issued$260,000 Paid-in capital-excess of
On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts.
Common stock, $1 par, 260,000 shares issued$260,000
Paid-in capital-excess of par, common520,000
Paid-in capital-excess of par, preferred150,000P
referred stock, $100 par, 15,000 shares outstanding1,500,000
Retained earnings3,000,000
Treasury stock, at cost, 6,000 shares30,000
During 2021, Fascom Inc. had several transactions relating to common stock.
January15:Declared a property dividend of 100,000 shares of Slowdown Company (book value $11.0 per share, fair value $9.50 per share).February17:Distributed the property dividend.April10: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 capitalexcess of par.) The fair value of the stock was $4 on this date.July18:Declared and distributed a 3% stock dividend on outstanding common stock. The fair value is $5 per share.December1:Declared a 50 cents per share cash dividend on the outstanding common shares.December20: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 $600,000 for 2021.(Negative amounts should be entered with a minus sign.)
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