1002 ACCT 312 - Sep 19, 2017.pdf - Sharon Yvonne James ACCT 312 040 Intermediate Accounting II Professor Mark Cadette Due P15-3 Hatch Company has two

1002 ACCT 312 - Sep 19, 2017.pdf - Sharon Yvonne James ACCT...

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Sharon Yvonne James ACCT 312 - 040 Intermediate Accounting II Professor Mark Cadette Due: September 19, 2017 P15-3 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 stockholder’s 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 stockholder’s equity during 2015. 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/share, Hatch uses the cost method. Sep. 15 10,000 shares of treasury stock reissued at $11 per share Dec. 31 The preferred dividend is declared, and a common dividend of 50c per share is declared. Dec. 31 Net Income is $2,100,000 Instructions Prepare the stockholders’ equity section for Hatch Company at December 31, 2015.
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