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.