Question: P 1 4 . 3 Hatch Company has two classes of capital stock outstanding: 8 % , $ 2 0 par preferred and $ 5

P14.3 Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31,2025, 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 ParPreferred Stock 200,000 Paid-in Capital in Excess of ParCommon Stock 27,000,000 Retained Earnings 4,500,000 The following transactions affected stockholders equity during 2026. Jan. 130,000 shares of preferred stock issued at $22 per share. Feb. 150,000 shares of common stock issued at $20 per share. June 12-for-1 stock split (par value reduced to $2.50). July 130,000 shares of common treasury stock purchased at $10 per share. Hatch uses the cost method. Sept. 1510,000 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 31,2026. Show all supporting computations.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!