On January 1, 2018, Fascom had the following account balances in its shareholders' equity accounts.
1 answer:
Answer:
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.
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