Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2014, 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 Par—Preferred Stock | 200,000 | |
| Paid-in Capital in Excess of Par—Common Stock | 27,000,000 | |
| Retained Earnings | 4,500,000 |
The following transactions affected stockholders’ equity during 2015.
| Jan. 1 | 30,000 shares of preferred stock issued at $22 per share. | |
| Feb. 1 | 50,000 shares of common stock issued at $20 per share. | |
| June 1 | 2-for-1 stock split (par value reduced to $2.50). | |
| July 1 | 30,000 shares of common treasury stock purchased at $10 per share. Hatch uses the cost method. | |
| Sept. 15 | 10,000 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. |
Prepare the stockholders’ equity section for Hatch Company at December 31, 2015.
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