Hatch Company has two classes of capital stock

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¢ per share is declared.
Dec. 31 Net income is $2,100,000.
Prepare the stockholders’ equity section for Hatch Company at December 31, 2013. Show all supporting computations.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...