Required:  Without preparing journal entries, prepare the shareholders' equity section of Fascom's balance sheet as of December 31, 2021.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. 

  

  

  

  

Common stock, $1 par, 254,000 shares issued 

254,000 

Paid-in capital–excess of par, common 

  

508,000 

Paid-in capital–excess of par, preferred 

  

120,000 

Preferred stock, $100 par, 12,000 shares outstanding 

  

1,200,000 

Retained earnings 

  

2,400,000 

Treasury stock, at cost, 5,400 shares 

  

27,000 

 

 

  

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 $10.4 per share, fair value $9.20 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 4% 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 $540,000 for 2021. (Negative amounts should be entered with a minus sign.) 

 

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