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Hatch Company has two classes of capital stock: 8%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were included
Hatch Company has two classes of capital stock: 8%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were included in stockholders' equity. The following transactions affected stockholders' equity during 2018. Jan. 1 - 30, 000 shares of preferred stock issued at $22 per share. Feb. 1 - 100, 000 shares of common stock issued at $20 per share. June 1 - Declared a 5% stock dividend on the outstanding common stock when the stock is selling for $25 per share. June 20 - Issued the stock dividend declared on June 1. July 1- 30, 000 shares of common treasury stock purchased at $10 per share. Sept. 15 - 10, 000 shares of treasury stock reissued at $11 per share. Dec. 31 - The preferred dividend is declared, and a common dividend at $0.50 per share is declared. Dec. 31 - Net income is $2, 100, 000. 1. Prepare Journal Entries to Record the Transactions. 2. Post all information into T-accounts. 3. Prepare the stockholders' equity section for Hatch Company at December 31, 2018. Show all supporting computations
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