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, 159,300 shares $ 3,186,000 Common Stock, 2,136,000 shares 10,680,000 Paid-in Capital in Excess of ParPreferred Stock 207,500 Paid-in Capital in Excess of ParCommon Stock 27,390,000 Retained Earnings 4,579,000 The following transactions affected stockholders equity during 2015. Jan. 1 35,400 shares of preferred stock issued at $23 per share. Feb. 1 53,900 shares of common stock issued at $20 per share. June 1 2-for-1 stock split (par value reduced to $2.50). July 1 38,100 shares of common treasury stock purchased at $10 per share. Hatch uses the cost method. Sept. 15 10,600 shares of treasury stock reissued at $12 per share. Dec. 31 The preferred dividend is declared, and a common dividend of 45 per share is declared. Dec. 31 Net income is $2,210,000. Prepare the stockholders equity section for Hatch Company at December 31, 2015. (Enter account name only and do not provide descriptive information.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started