In: Accounting
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.)
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 |