Question
Problem 15-3 Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2014, the following
Problem 15-3
Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common.
At December 31, 2014, the following accounts were included in stockholders equity.
Preferred Stock, 152,400 shares $ 3,048,000
Common Stock, 2,058,000 shares 10,290,000
Paid-in Capital in Excess of ParPreferred Stock 201,200
Paid-in Capital in Excess of ParCommon Stock 27,290,000
Retained Earnings 4,539,000
The following transactions affected stockholders equity during 2015.
Jan. 1 32,300 shares of preferred stock issued at $23 per share.
Feb. 1 58,300 shares of common stock issued at $21 per share.
June 1 2-for-1 stock split (par value reduced to $2.50).
July 1 35,600 shares of common treasury stock purchased at $10 per share. Hatch uses the cost method.
Sept. 15 10,800 shares of treasury stock reissued at $12 per share.
Dec. 31 The preferred dividend is declared, and a common dividend of 50 per share is declared.
Dec. 31 Net income is $2,236,000.
Prepare the stockholders equity section for Hatch Company at December 31, 2015.
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