Question
In: Accounting
On January 1, 2016, Fascom had the following account balances in its shareholders' equity accounts. Common...
|
On January 1, 2016, Fascom had the following account balances in its shareholders' equity accounts. |
| Common stock, $1 par, 247,000 shares issued | 247,000 |
| Paid-in capital - excess of par, common | 494,000 |
| Paid-in capital - excess of par, preferred | 165,000 |
| Preferred stock, $100 par, 16,500 shares outstanding | 1,650,000 |
| Retained earnings | 3,300,000 |
| Treasury stock, at cost, 4,700 shares | 23,500 |
|
During 2016, Fascom Inc. had several transactions relating to common stock. |
| January 15: |
Declared a property dividend of 100,000 shares of Slowdown Company (book value $11.3 per share, market value $9.65 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. The market value of the stock was $4 on this date. |
| July 18: |
Declared and distributed a 4% stock dividend on outstanding common stock. The market 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, 2016. Assume net income is $470,000 for 2016. |
Solutions
Expert Solution
| Sharholder' Equity | Amount |
| Preferred Stock 10000 Shares $100 Par | 16,50,000.00 |
| Common Stock ( Note-1) | 5,08,684.00 |
| Paid in Capital - Excess of Par, Preferred | 1,65,000.00 |
| Paid in Capital - Excess of Par, Common ( Note-2) | 22,13,788.00 |
| Retained Earning ( Note-3) | 23,500.00 |
| Treasury Stock at Cost | 45,60,972.00 |
| Total Shareholder Equity |
| Note-1:-( Common stock ( 247000)-4700 ( Treasru Stock))X2=484600 ShareX 1.04X1=$503984+(4700 Tresury Stock , $1)=$508684 |
| Note-2: Paid in Capital Common+(Common shareX Stock Dividend)+ ( Market Value-Face Value) |
| :- $494000-((494000X4%)X($5-$1))= $414960 |
| Note-3 : Retained Earning |
| Opening: 3300000 |
| Less: Dividend (100000X9.65):-965000 |
| Less: Stock Dividend (484600X4%X5):-96920 |
| Less: Cash Dividend ($503984X50%): 251992 |
| Less: 242300 |
| Add; Net Income : 470000 |
| Total : 2213788 |
ekkarill92 answered 1 year agoRelated Solutions
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