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
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
$ 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 |
|
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
Stockholder's Equity -
Stockholder's Equity includes the amount contributed by shareholders issued in the form of common stock, Paid-in Capital, and Preferred Stock. Also includes Retained Earnings, which is the accumulated profit earned by the company and treasury stock.
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how did you get the numbers for cash dividend preferred and cash dividend common