Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5...
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Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2017, 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 Paid-in Capital in Excess of ParCommon Stock Retained Earnings $3,000,000 10,000,000 200,000 27,000,000 4,500,000 The following transactions affected stockholders' equity during 2018. Jan. I Feb. 1 June | July 1 Sept.15 Dec.31 Dec.31 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). 30,000 shares of common treasury stock purchased at $10 per share. Hatch uses the cost method. 10,000 shares of treasury stock reissued at $11 per share. The preferred dividend is declared, and a common dividend of 50 per share is declared. Net income is $2,100,000. Required: Prepare the stockholders' equity section for Hatch Company at December 31, 2018
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