Question: sheffield company has two classes of capital stock outstanding 7...
Sheffield Company has two classes of capital stock outstanding:
7%, $100 par preferred and $2 par common. At December 31, 2017, the
following accounts were included in stockholders’ equity.
|Preferred Stock, 50,000 shares||$ 5,000,000|
|Common stock, 1,200,000 shares||2,400,000|
|Paid-in Capital in Excess of Par – Preferred Stock||300,000|
|Paid-in Capital in Excess of Par – Common Stock||28,800,000|
The following transactions affected stockholders’ equity during 2018.
|Jan. 1||-||500 shares of preferred stock issued at $ 108 per share.|
|Mar. 21||-||110,000 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 $ 32 per share. Sheffield uses the cost method.|
|Sept. 4||-||9,000 shares of treasury stock reissued at $ 38 per share.|
|Dec. 31||-||The preferred dividend is declared, and a common dividend of 68¢ per share is declared.|
|Dec. 31||-||Net income is $ 4,587,000.|
Prepare the stockholders’ equity section for Hatch Company at December 31, 2018.