Homework Quiz—9 S11 Section2

50 par 5000000 shares authorized 4100000 shares

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Common stock, $2.50 par, 5,000,000 shares authorized, 4,100,000 shares issued, 4,089,000 shares outstanding ............................................................. 10,250,000 Total capital stock .................................................................................... 13,850,000 Additional paid-in capital Excess over par—preferred ................................................. $ 260,000 Excess over par—common .................................................. 27,750,000 From treasury stock transactions ......................................... 10,000 28,020,000 Total paid-in capital ................................................... 41,870,000 Retained earnings .......................................................................... 4,272,000 Total paid-in capital and retained earnings ................................... 46,142,000 Less: Cost of treasury stock (11,000 shares common) ................................................. (220,000 ) Total stockholders’ equity ......................................... $45,922,000 Transaction 1. On 2/1/10 Hatch purchased 5,000 shares of treasury stock for $21 per share. 2. On 2/25/10 Hatch issued 11,500 shares of its previously unissued common shares to pay a $241,500 non-interest bearing note. For each of the items below indicate the quantitative effect on the financial statement element noted. If there is no effect, write “no effect.” a. The effect of Transaction 1 on Hatch’s Total Assets is: b. The effect of Transaction 1 on Hatch’s Common Shares Outstanding is: c. The effect of Transaction 1 on Hatch’s Number of Treasury Shares is: d. Hatch’s Total Stockholders’ Equity after transaction 1 is: e. Hatch’s Total Capital Stock after Transaction 1 is: f. Hatch’s Common Stock Account Balance after Transaction 2 is: g. Hatch’s Excess Over Par – Common account balance after Transaction 2 is: h. The effect of Transaction 2 on Hatch’s Total Assets is: i. The effect of Transaction 2 on Hatch’s Total Stockholders’ Equity is: j. The effect of Transaction 2 on Hatch’s Total Liabilities is: 3
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