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

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Accounting

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

Preferred Stock, 137,800 shares$ 2,756,000
Common Stock, 2,014,000 shares10,070,000
Paid-in Capital in Excess of Par—Preferred Stock199,000
Paid-in Capital in Excess of Par—Common Stock26,771,000
Retained Earnings4,429,000


The following transactions affected stockholders’ equity during2018.

Jan. 130,900 shares of preferred stock issued at $24 per share.
Feb. 150,100 shares of common stock issued at $21 per share.
June 12-for-1 stock split (par value reduced to $2.50).
July 132,700 shares of common treasury stock purchased at $10 pershare. Whispering uses the cost method.
Sept. 159,400 shares of treasury stock reissued at $11 per share.
Dec. 31The preferred dividend is declared, and a common dividend of46¢ per share is declared.
Dec. 31Net income is $2,093,000.


Prepare the stockholders’ equity section for Whispering Company atDecember 31, 2018. (Enter account name only and do notprovide descriptive information.)

Answer & Explanation Solved by verified expert
3.7 Ratings (600 Votes)

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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