(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, 2012, the following accounts were included in stockholders’ equity.
|
Preferred Stock, 150,000 shares |
$ 3,000,000 |
|
Common Stock, 2,000,000 shares |
10,000,000 |
|
Paid in Capital in Excess of Par—Preferred Stock |
200,000 |
|
Paid in Capital in Excess of Par—Common Stock |
27,000,000 |
|
Retained Earnings |
4,500,000 |
The following transactions affected stockholders’ equity during 2013.
|
Jan. 1 |
30,000 shares of preferred stock issued at $22 per share. |
|
Feb. 1 |
50,000 shares of common stock issued at $20 per share. |
|
June 1 |
2 for 1 stock split (par value reduced to $2.50). |
|
July 1 |
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, 2013. Show all supporting computations.