(LO1,2,3,4) (Equity Transactions and Statement Preparation) Hatch Company has two classes of capital stock outstanding:

8%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were included in stockholders’

equity.

Preferred Stock, 150,000 shares $ 3,000,000 Common Stock, 2,000,000 shares 10,000,000 Paid-in Capital in Excess of Par—Preferred Stock 200,000 Paid-in Capital in Excess of Par—Common Stock 27,000,000 Retained Earnings 4,500,000 The following transactions affected stockholders’ equity during 2018.

Jan. 1 30,000 shares of preferred stock issued at $22 per share.

Feb. 1 50,000 shares of common stock issued at $20 per share.

June 1 2-for-1 stock split (par value reduced to $2.50).

July 1 30,000 shares of common treasury stock purchased at $10 per share. Hatch uses the cost method.

Sept. 15 10,000 shares of treasury stock reissued at $11 per share.

Dec. 31 The preferred dividend is declared, and a common dividend of 50¢ per share is declared.

Dec. 31 Net income is $2,100,000.

Instructions Prepare the stockholders’ equity section for Hatch Company at December 31, 2018. Show all supporting computations.