March 1 May 10 June 1 Issues 65,000 additional shares of $1 par value common stock for $62 per share. Purchases 6,000 shares of treasury stock for $65 per share. Declares a cash dividend of $2.00 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 3,000 shares of treasury stock purchased on May 10 for $70 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $5,500,000; and Retained Earnings, $3,000,000. Net income for the year ended December 31, 2024, is $700,000. Required: Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.
March 1 May 10 June 1 Issues 65,000 additional shares of $1 par value common stock for $62 per share. Purchases 6,000 shares of treasury stock for $65 per share. Declares a cash dividend of $2.00 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 3,000 shares of treasury stock purchased on May 10 for $70 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $5,500,000; and Retained Earnings, $3,000,000. Net income for the year ended December 31, 2024, is $700,000. Required: Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vinubhai
Transcribed Image Text:March 1
May 10
June 1
Issues 65,000 additional shares of $1 par value common stock for $62 per share.
Purchases 6,000 shares of treasury stock for $65 per share.
Declares a cash dividend of $2.00 per share to all stockholders of record on June 15. (Hint: Dividends are
not paid on treasury stock.)
July 1
Pays the cash dividend declared on June 1.
October 21 Resells 3,000 shares of treasury stock purchased on May 10 for $70 per share.
Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock,
$100,000; Additional Paid-in Capital, $5,500,000; and Retained Earnings, $3,000,000. Net income for the year ended December 31,
2024, is $700,000.
Required:
Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2024.
Note: Amounts to be deducted should be indicated by a minus sign.
POWER DRIVE CORPORATION
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' Equity:
Common Stock
Additional Paid-in Capital
Total Paid-in Capital
Answer is not complete.
Retained Earnings
Treasury Stock
Total Stockholders' Equity
$
$
165,000
165,000
3,382,000
3,547,000
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