hatch company has two classes of capital stock 264850

Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2012, 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 2013.

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?c per share is declared.

Dec. 31 Net income is $2,100,000.

Instructions

Prepare the stockholders’ equity section for Hatch Company at December 31, 2013. Show all supporting computations.