Practice Problem 15-1 t included in stockholders\' es of capital stock outstandi

Question

Practice Problem 15-1 t included in stockholders' es of capital stock outstanding: 796 $100 par preferred and $2 par con on. At December 31, 2017, the following accounts were equity Preferred Stock, 50,000 shares Common stock, 1,200,000 shares Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par- Common Stock Retained Earnings $5,000,000 2,400,000 300,000 31,200,000 12,800,000 The following transactions affected stockholders' equity during 2018. an. 1 500 shares of preferred stock issued at $108 per share. Mar. 21-101,000 shares of common stock issued at $40 per share. June 1 2-for-1 common stock split (par value reduced to $1) July 15 77,000 shares of common treasury stock purchased at $28 per share. Sunland uses the cost method. Sept. 4 9,000 shares of treasury stock reissued at $34 per share. Dec. 31 The preferred dividend is declared, and a common dividend of 736 per share is declared. Dec. 31 Net income is $4,352,000. Prepare the stockholders' equity section for Hatch Company at December 31, 2018. SUNLAND COMPANY Stockholders Equity December 31, 2018

Explanation / Answer

Preferred Stock Balance (50,000 shares) 5000000 Jan. 1 - Issued 500 shares 50000 5050000 Common Stock Balance (1,200,000 shares) 2400000 Mar. 21 - Issued 101,000 shares 202000 2602000 Jun 1 - Spilit 2-1 ( Par value decreased, so number of shares increased from 1,301,000 to 2,602,000) 2602000 Paid in capital in excess of par - Preferred stock Balance 300000 Jan. 1 - Issued 500 shares 4000 304000 Paid in capital in excess of par - Common stock Balance 31200000 Mar. 21 - Issued 101,000 shares 3838000 35038000 Retained earnings Balance 12800000 Preferred dividend - 7% on $5,050,000 353500 12446500 Common stock dividend - 73c on 2,534,000 shares 1849820 10596680 Net Income 4352000 14948680 Treasury stock Balance July. 15 - Purchased 77,000 shares 2156000 2156000 Sept. 4 - Reissued 9,000 shares 252000 1904000 Paid in capital - Treasury Balance Sept. 4 - Reissued 9,000 shares 54000 54000 SUNLAND COMPANY Stockholder's Equity December 31, 2018 Contributed capital 7% Preferred stock $100 par, 50,500 shares 5050000 Common stock $1 par - 2,602,000 shares 2602000 Total contributed capital 7652000 Paid in capital Paid in capital in excess of par - Preferred 304000 Paid in capital in excess of par - Common 35038000 Paid in capital - Treasury 54000    Total paid in capital 35396000 Total capital 43048000 Retained earnings 14948680 Total capital and retained earnings 57996680 Less: Treasury stock (68,000 shares) 1904000 Stockholder's Equity 56092680

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