On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 256,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 13,000 shares outstanding Retained earnings Treasury stock, at cost, 5,600 shares $ 256,000 512,000 130,000 1,300,000 2,600,000 28,000 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 $10.6 per share, fair value $9.30 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. (Fascon chose to reduce Paid-in capital-excess of par.) The fair value of the stock vas $4 on this date. July 18: Declared and distributed a 38 stock dividend on outstanding common stock. The fair value is $5 per share. December 11 Declared a 50 centa 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 $560,000 for 2021. (Negative amounts should be entered with a minus sign.)
On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 256,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 13,000 shares outstanding Retained earnings Treasury stock, at cost, 5,600 shares $ 256,000 512,000 130,000 1,300,000 2,600,000 28,000 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 $10.6 per share, fair value $9.30 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. (Fascon chose to reduce Paid-in capital-excess of par.) The fair value of the stock vas $4 on this date. July 18: Declared and distributed a 38 stock dividend on outstanding common stock. The fair value is $5 per share. December 11 Declared a 50 centa 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 $560,000 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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Ashvin
Transcribed Image Text:On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts.
Common stock, $1 par, 256,000 shares issued
Paid-in capital-excess of par, common
Paid-in capital-exceas of par, preferred
Preferred stock, $100 par, 13,000 shares outstanding
Retained earnings
Treasury stock, at cost, 5,600 shares
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 $10.6 per share, fair value
$9.30 per share).
Distributed the property dividend.
February 17:
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 38 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.
FASCOM
Balance Sheet (Partial)
December 31, 2021
Required:
Without preparing journal entries, prepare the shareholders' equity section of Fascom's balance sheet as of December 31, 2021.
Assume net income is $560,000 for 2021. (Negative amounts should be entered with a minus sign.)
Shareholders' equity
Preferred stock
Common stock
Paid-in capital-excess of par, common
Paid-in capital-excess of par, preferred
Retained earnings
Treasury stock
Total shareholders' equity
$ 1,300,000
130,000
$ 256,000
512,000
130,000
(28,000)
1,300,000
2,600,000
28,000
S 1,402,000
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