During 2021, Fascom Inc. had several transactions relating to common stock. January 15: Declared a property...

  

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During 2021, Fascom Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 10ee, e00 shares of Slowdown Company (book value $11.5 per share, fair value $9.75 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. 18: Declared and distributed a 3% stock dividend on outstanding common stock. The fair value is $5 per July 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 $450.000 for 2021. (Negative amounts should be entered with a minus sign.) Answer is complete but not entirely correct. FASCOM Balance Sheet (Partial) December 31, 2021 Shareholders' equity Preferred stock $ 1,750,000 Common stock 499,930 Paid-in capital - excess of par, preferred 175,000 Paid-in capital - excess of par, common Retained earnings Treasury stock 504,430 8 2,429,065 (22,500) Total shareholders' equity $ 5,335,925 Common stock, $1 par, 245, e00 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 17,500 shares outstanding Retained earnings Treasury stock, at cost, 4,500 shares $ 245,000 490,000 175,000 1,750, 000 3,500,000 22,500 During 2021, Fascom Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 10ee, e00 shares of Slowdown Company (book value $11.5 per share, fair value $9.75 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. 18: Declared and distributed a 3% stock dividend on outstanding common stock. The fair value is $5 per July 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 $450.000 for 2021. (Negative amounts should be entered with a minus sign.) Answer is complete but not entirely correct. FASCOM Balance Sheet (Partial) December 31, 2021 Shareholders' equity Preferred stock $ 1,750,000 Common stock 499,930 Paid-in capital - excess of par, preferred 175,000 Paid-in capital - excess of par, common Retained earnings Treasury stock 504,430 8 2,429,065 (22,500) Total shareholders' equity $ 5,335,925 Common stock, $1 par, 245, e00 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 17,500 shares outstanding Retained earnings Treasury stock, at cost, 4,500 shares $ 245,000 490,000 175,000 1,750, 000 3,500,000 22,500

Answer rating: 100% (QA)

Answer Explanation 1 Common stock Treasury stock Stock split 245000 45002 ... View the full answer