Common stock, $1 par, 260,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 15,000 shares outstanding Retained earnings Treasury stock, at cost, 6,000 shares 260,000 520,000 150,000 1,500,000 3,000,000 30,000 During 2021, Fascom Inc. had several transactions relating to common stock. 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $11.0 per share, fair value $9.50 per share). January 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 £orm 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. 18: Declared and distributed a 38 stock dividend on outstanding common stock. The fair value is $5 per share. 1: Declared a 50 cents per share cash dividend on the outstanding common shares. July December 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 $600,000 for 2021. (Negative amounts should be entered with a minus sign.)
Common stock, $1 par, 260,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 15,000 shares outstanding Retained earnings Treasury stock, at cost, 6,000 shares 260,000 520,000 150,000 1,500,000 3,000,000 30,000 During 2021, Fascom Inc. had several transactions relating to common stock. 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $11.0 per share, fair value $9.50 per share). January 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 £orm 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. 18: Declared and distributed a 38 stock dividend on outstanding common stock. The fair value is $5 per share. 1: Declared a 50 cents per share cash dividend on the outstanding common shares. July December 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 $600,000 for 2021. (Negative amounts should be entered with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:### Fascom Inc. Common Stock Transactions in 2021
**Equity Information:**
- **Common stock, $1 par, 260,000 shares issued**
- **Paid-in capital—excess of par, common**: $520,000
- **Paid-in capital—excess of par, preferred**: $150,000
- **Preferred stock, $100 par, 15,000 shares outstanding**: $1,500,000
- **Retained earnings**: $3,000,000
- **Treasury stock, at cost, 6,000 shares**: $30,000
**Transactions:**
- **January 15**: Declared a property dividend of 100,000 shares of Slowdown Company. The book value was $11.0 per share, and the fair value was $9.50 per share.
- **February 17**: Paid the property dividend.
- **April 10**: Implemented a 2-for-1 stock split 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 was $5 per share.
- **December 1**: Declared a 50 cents per share cash dividend on outstanding common shares.
- **December 20**: Paid the cash dividend.
**Task:**
- 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.
**Graph/Diagram Description:**
The table provided is a partial balance sheet for Fascom as of December 31, 2021, focusing on shareholders' equity. The table has several blank rows intended to capture different components of the equity section not fully detailed in the image. The instructions emphasize the consideration of transactions affecting paid-in capital, stock dividends, and retained earnings when preparing the balance sheet.
This document assists in understanding equity alterations driven by dividends, stock splits, and other corporate actions commonly encountered in financial accounting and corporate finance.
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