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.)
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.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 10MC
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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 | |
2,000,000 | ||
4,000,000 | ||
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
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