Reference no: EM132842989
Problem - On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts.
Common stock, $1 par, 249,000 shares issued $249,000
Paid-in capital-excess of par, common 498,000
Paid-in capital-excess of par, preferred 155,000
Preferred stock, $100 par, 15,500 shares outstanding 1,550,000
Retained earnings 3,100,000
Treasury stock, at cost, 4,900 shares 24,500
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 $11.1 per share, fair value $9.55 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 56 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 $490,000 for 2021.