HATCH COMPANY Stockholders Equity Capital Stock Preferred

Hatch company stockholders equity capital stock

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PROBLEM 15-3HATCH COMPANYStockholders’ EquityDecember 31, 2012Capital StockPreferred stock, $20 par, 8%, 180,000 shares issued and outstanding..............................................................................................$ 3,600,000Common stock, $2.50 par, 4,100,000 shares issued, 4,080,000 shares outstanding.........................................................................10,250,000Total capital stock................................................................................13,850,000Additional paid-in capitalIn excess of par—preferred stock.....................................................................$ 260,000In excess of par—common stock......................................................................27,750,000From treasury stock..........................................................................................10,00028,020,000Total paid-in capital.............................................................................41,870,000Retained earnings..........................................................................................................4,272,000Total paid-in capital and retained earnings....................................................................46,142,000Less: Treasury stock(20,000 shares common)...............................................................................(200,000)Total stockholders’ equity...................................................................$45,942,000Supporting balances are indicated in the following T-Accounts.Preferred StockBal.3,000,0001.600,0003,600,000Paid-in Capital in Excess of Par—Common StockBal.27,000,0004.750,00027,750,000Common StockBal.10,000,0003.250,00010,250,000Retained EarningsBal.4,500,0008.288,000 10.2,100,0009.2,040,000 4,272,000Paid-in Capital in Excess of Par—Preferred StockBal.200,0002.60,000260,000Treasury Stock
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CH15 E-22, P-3, P-5 4 5. 300,000 6. 100,000 200,000 Paid-in Capital from Treasury Stock 7. 10,000 10,000 1. Jan. 1 30,000 X $20 2. Jan. 1 30,000 X $2 3. Feb. 1 50,000 X $5 4. Feb. 1 50,000 X $15 5. July 1 30,000 X $10 6. Sept. 15 10,000 X $10 7. Sept. 15 10,000 X $1 8. Dec. 31 3,600,000 X 8% 9. Dec. 31 4,080,000* X 50¢ *[(2,000,000 + 50,000) X 2] – 30,000 + 10,000 10. Dec. 31 Net income PROBLEM 15-5 (a) Treasury Stock (380 X $40) ........................................................................................... 15,200 Cash ................................................................................................................. 15,200 (b) Treasury Stock (300 X $45) ........................................................................................... 13,500 Cash ................................................................................................................. 13,500 (c) Cash (350 X $42) ........................................................................................................... 14,700 Treasury Stock (350 X $40) ............................................................................. 14,000 Paid-in Capital from Treasury Stock (350 X $2) ..................................................................................................... 700 (d) Cash (110 X $38) ........................................................................................................... 4,180 Paid-in Capital from Treasury Stock .............................................................................. 620 Treasury Stock ................................................................................................. 4,800* *30 shares purchased at $40 = $1,200 80 shares purchased at $45 = 3,600 ( Cost of treasury shares sold using FIFO = $4,800
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