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 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 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 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. Prepare the stockholders� equity section for Hatch Company at December 31, 2015 I got the answer but I dont know how they get prefered dividend and common dividend and I dont know how they get the numbers from balance sheet . could you explain and give more details please

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 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 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 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.

Prepare the stockholders� equity section for Hatch Company at December 31, 2015

I got the answer but I dont know how they get prefered dividend and common dividend and I dont know how they get the numbers from balance sheet . could you explain and give more details please

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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