Question
Marigold Company has two classes of capital stock outstanding: 7%, $100 par preferred and $2 par common. At December 31, 2017, the following accounts were
Marigold Company has two classes of capital stock outstanding: 7%, $100 par preferred and $2 par common. At December 31, 2017, the following accounts were included in stockholders equity.
Preferred Stock, 60,000 shares $6,000,000
Common stock, 1,000,000 shares 2,000,000
Paid-in Capital in Excess of Par Preferred Stock 360,000
Paid-in Capital in Excess of Par Common Stock 25,000,000
Retained Earnings 13,100,000
The following transactions affected stockholders equity during 2018.
Jan. 1 - 500 shares of preferred stock issued at $107 per share.
Mar. 21 - 105,000 shares of common stock issued at $39 per share.
June 1 - 2-for-1 common stock split (par value reduced to $1).
July 15 - 75,000 shares of common treasury stock purchased at $32 per share. Marigold uses the cost method.
Sept. 4 - 9,000 shares of treasury stock reissued at $38 per share.
Dec. 31 - The preferred dividend is declared, and a common dividend of 75 per share is declared.
Dec. 31 - Net income is $4,199,000.
Prepare the stockholders equity section for Hatch Company at December 31, 2018.
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