P14.3 (LO 1, 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, 2025, the following accounts were included in stockholders' equity. Preferred Stock, 150,000 shares Common Stock, 2,000,000 shares Paid-in Capital in Excess of Par-Preferred Stock $ 3,000,000 10,000,000 200,000 Paid-in Capital in Excess of Par-Common Stock 27,000,000 Retained Earnings The following transactions affected stockholders' equity during 2026. Jan. 1 Feb. 1 June 1 July 1 30,000 shares of preferred stock issued at $22 per share. 50,000 shares of common stock issued at $20 per share. 2-for-1 stock split (par value reduced to $2.50). 4,500,000 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, 2026. Show all supporting computations. PREFERRED STOCK 600,000 COMMON STOCK 10,000,000 Bal. 3,000,000 Bal. 250,000 3,600,000 PAID-IN CAPITAL IN EXCESS OF PAR-PREFERRED STOCK 60,000 200,000 Bal. 260,000 TREASURY STOCK Supporting calculations: 1 Jan. 11 12 Jan. 11 3 Feb. 1 4 Feb. 1 5 July 1 6 Sept. 15 7 Sept. 15 8 Dec. 31 9 Dec. 31 10 Dec. 31 10,250,000 PAID-IN CAPITAL IN EXCESS OF PAR - COMMON STOCK 750,000 27,000,000 Bal. RETAINED EARNINGS 4,500,000 Bal. 27,750,000 PAID-IN CAPITAL FROM TREASURY STOCK