The shareholders equity accounts for Fair Box Corp. showed the following on December 31, 2021: Common shares
Question:
The shareholders’ equity accounts for Fair Box Corp. showed the following on December 31, 2021:
Common shares – Authorized: 300,000 shares, Issued and outstanding:
15,000 shares $450,000 Preferred shares – $1, non-cumulative, Authorized:
400,000 shares, Issued and outstanding: 5,000 shares $60,000 Retained earnings - $250,000 Transactions during the year 2021:
On March 14, Fair Box Corporation bought back and retired 2,500 of their common shares for $35 each.
On May 18, Fair Box Corporation declared a 3:1 stock split.
On August 15, Fair Box Corporation exchanged 12,000 common shares for equipment with a fair market value of $120,000, current market price $11 per share.
On October 1, Fair Box declared 15% share dividends to its common shareholders. Current market price, $12 per share.
On October 15, shares dividends were distributed to shareholders. On December 31, closed the credit balance of $150,000 in the Income Summary account.
Required:
Prepare the Equity section of the Balance Sheet at December 31, 2021.
Expert Answer:
The shareholders equity accounts for Fair Box Corp showed the following on December 31 2021 Common s... View the full answer
