On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 240,000 shares issued $ 240,000 Paid-in capital–excess of par, common 480,000 Paid-in capital–excess of par, preferred 200,000 Preferred stock, $100 par, 20,000 shares outstanding 2,000,000 Retained earnings 4,000,000 Treasury stock, at cost, 4,000 shares 20,000 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 $12.0 per share, fair value $10.00 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 $400,000 for 2021. (Negative amounts should be entered with a minus sign.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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


Common stock, $1 par, 240,000 shares issued	$	240,000
Paid-in capital–excess of par, common		480,000
Paid-in capital–excess of par, preferred		200,000
Preferred stock, $100 par, 20,000 shares outstanding		2,000,000
Retained earnings		4,000,000
Treasury stock, at cost, 4,000 shares		20,000

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 $12.0 per share, fair value $10.00 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 $400,000 for 2021. (Negative amounts should be entered with a minus sign.)

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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