On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued$250,000 Paid-in capital—excess of par, common 500,000 Paid-in capital—excess of par, preferred 100,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Retained earnings 2,000,000 Treasury stock, at cost, 5,000 shares 25,000 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 per share, fair value $9 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 $500,000 for 2021. (Negative amounts should be entered with a minus sign.) FASCOMBalance Sheet (Partial)December 31, 2021Shareholders' equity Common stock$509,700Paid-in capital - excess of par, preferred100,000Paid-in capital - excess of par, common Preferred stock1,000,000Treasury stock(25,000)Retained earnings Total shareholders' equity$1,584,700

Stockholders' equity represents the total stock issued by the company for an accounting period. It…

Answered: On January 1, 2021, Fascom had the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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


Common stock, $1 par, 250,000 shares issued	$	250,000
Paid-in capital—excess of par, common		500,000
Paid-in capital—excess of par, preferred		100,000
Preferred stock, $100 par, 10,000 shares outstanding		1,000,000
Retained earnings		2,000,000
Treasury stock, at cost, 5,000 shares		25,000

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 per share, fair value $9 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 $500,000 for 2021. (Negative amounts should be entered with a minus sign.)

FASCOM
Balance Sheet (Partial)
December 31, 2021
Shareholders' equity
Common stock	$509,700
Paid-in capital - excess of par, preferred	100,000
Paid-in capital - excess of par, common
Preferred stock	1,000,000
Treasury stock	(25,000)
Retained earnings

Total shareholders' equity	$1,584,700