Acc423 Intermediate Accounting: Week 2 LT Assignment - P15-3 Hatch Company has two classes

Acc423 Intermediate Accounting Week 2 Learning Team Assignment P15-3 Equity Transactions and Statement Preparation Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2010, 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 200,000 Paid-in Capital in Excess of Par—Common 27,000,000 Retained Earnings 4,500,000 The following transactions affected stockholders’ equity during 2011. 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. Instructions: Prepare the stockholders’ equity section for Hatch Company at December 31, 2010. Show all supporting computations.
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