Whispering Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par...

Whispering Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were included in stockholders’ equity.

Preferred Stock, 137,800 shares		$ 2,756,000
Common Stock, 2,014,000 shares		10,070,000
Paid-in Capital in Excess of Par—Preferred Stock		199,000
Paid-in Capital in Excess of Par—Common Stock		26,771,000
Retained Earnings		4,429,000

The following transactions affected stockholders’ equity during 2018.

Jan. 1		30,900 shares of preferred stock issued at $24 per share.
Feb. 1		50,100 shares of common stock issued at $21 per share.
June 1		2-for-1 stock split (par value reduced to $2.50).
July 1		32,700 shares of common treasury stock purchased at $10 per share. Whispering uses the cost method.
Sept. 15		9,400 shares of treasury stock reissued at $11 per share.
Dec. 31		The preferred dividend is declared, and a common dividend of 46¢ per share is declared.
Dec. 31		Net income is $2,093,000.

Prepare the stockholders’ equity section for Whispering Company at December 31, 2018. (Enter account name only and do not provide descriptive information.)

Expert Solution

HATCH COMPANY
Stockholders’ Equity
December 31, 2018
Capital Stock
Preferred Stock	$33,74,000
Common Stock	$1,03,20,500
Total Capital Stock		$1,36,94,500
Additional Paid in capital
Preferred Stock	$3,22,600
Common Stock	$2,75,72,600
Treasury Stock	$9,400
		$2,79,04,600
Total Paid in Capital		$4,15,99,100
Retained Earnings		$77,30,688
Total Paid-in Capital and Retained Earnings		$4,93,29,788
Less:Treasury Stock		$2,33,000
Total Stockholders' Equity		$4,90,96,788

Preferred Stock
Date	Balance	$27,56,000
01-Jan	(30900*20)	$6,18,000

	Balance	$33,74,000

Paid-in Capital in Excess of Par—Common Stock
01-Feb	Balance	$2,67,71,000
	(50100*16)	$8,01,600
		$2,75,72,600

Common Stock
01-Feb	Balance	$1,00,70,000
	(50100*5)	$2,50,500
		$1,03,20,500

Retained Earnings
	Balance	$44,29,000
31-Dec	Dividend Paid
	(3374000*8%)	-$2,69,920
	(2014000+50100-32700+9400)*0.46	-$9,38,768
	Add : Net income	$20,93,000
		$77,30,688

Paid-in Capital in Excess of Par—Preferred Stock
	Balance	$1,99,000
Jan-01	(30900*4)	$1,23,600
		$3,22,600

Treasury Stock
Jul-01	(32700*10)	$3,27,000
Sep-15	(9400*10)	-$94,000
		$2,33,000

Paid-in Capital from Treasury Stock
31-Dec	9400*1	$9,400

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