On January 1, 2018, Fascom had the following account balances in its shareholders' equity accounts.
Common stock, $1 par, 250,000 shares issued 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 2018, 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, fair value $9 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 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 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, 2018. Assume net income is $500,000 for 2018.
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Ответ:
January 15, 2016
Loss on investment [(100,000 - ($10 - $9)] 100,000
To Investment in Slowdown Co. 100,000
Retained earnings (100,000 x $9) 900,000
To Property dividend payable 900,000
February 17, 2016
Property dividend payable 900,000
To Investment in Slowdown Co. 900,000
April 10, 2016
Retained earnings [(250,000 – 5,000) x $1] 245,000
To Common stock 245,000
July 18, 2016
Retained earnings [(3% x 490,000) x $5] 73,500
To Common stock [(3% x 490,000) x $1] 14,700
To Paid-in capital - excess of par 58,800
December 1, 2016
Retained earnings (504,700 x $.50) 252,350
To Cash dividends payable 252,350
December 20, 2016
Cash dividends payable 252,350
To Cash 252,350
Explanation:
Part B( shareholders equity) is attached below.
Ответ: