Question
Hatch Company has two classes of capital stock outstanding: 7%, $20 par preferred and $5 par common. At December 31, 2014, the following accounts were
Hatch Company has two classes of capital stock outstanding: 7%, $20 par preferred and $5 par common. At December 31, 2014, the following accounts were included in stockholders equity.
Preferred Stock, 156,000 shares $ 3,120,000
Common Stock, 2,011,000 shares 10,055,000
Paid-in Capital in Excess of ParPreferred Stock 212,900
Paid-in Capital in Excess of ParCommon Stock 27,970,000
Retained Earnings 4,567,000
The following transactions affected stockholders equity during 2015.
Jan. 1 35,900 shares of preferred stock issued at $22 per share.
Feb. 1 59,200 shares of common stock issued at $22 per share.
June 1 2-for-1 stock split (par value reduced to $2.50).
July 1 39,000 shares of common treasury stock purchased at $9 per share. Hatch uses the cost method.
Sept. 15 10,600 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 $2,200,000.
Prepare the stockholders equity section for Hatch Company at December 31, 2015. (Enter account name only and do not provide descriptive information.)
HATCH COMPANY Stockholders' Equity December 31, 2015
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