On January 1, 2006, Fascom had the following account balances in its shareholders' equity accounts. Common stock

Question:

On January 1, 2006, Fascom had the following account balances in its shareholders' equity accounts.

Common stock $1 par, 250,000 shares issues .... 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 2006, 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, market value $9 per share).

February 17:distributed the property dividend

April 10:A 2 for 1 stock split was declared on outstanding common stock and affected in the form of a stock dividend. The market value of the stock was $4 on this date.

July 18: Declared and distributed a 3% stock dividend on outstanding common stock market value per share, $5.

December 1:Declared a fifty 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, 2006. Assume net income is $500,000 for 2006. Use of T-accounts very helpful. Be sure to keep track of stock transactions.

Common Stock
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