prepare the stockholders' equity section

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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.