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Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. March 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. May 10 June 1 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 statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) Balance, January 1 Issue common stock Purchase treasury stock Declare dividends Payment of cash dividends Resell treasury stock Net income Balance, December 31 POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2024 Common Stock $ Additional Retained Paid-in Capital Earnings $ 165,000 100,000 $ 5,500,000 $ 3,000,000 $ 65,000 5,500,000 Treasury Stock 3,000,000 Total Stockholders' Equity 8,600,000 0 $ 0 $ 8,665,000

Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. March 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. May 10 June 1 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 statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) Balance, January 1 Issue common stock Purchase treasury stock Declare dividends Payment of cash dividends Resell treasury stock Net income Balance, December 31 POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2024 Common Stock $ Additional Retained Paid-in Capital Earnings $ 165,000 100,000 $ 5,500,000 $ 3,000,000 $ 65,000 5,500,000 Treasury Stock 3,000,000 Total Stockholders' Equity 8,600,000 0 $ 0 $ 8,665,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024: - **March 1:** Issues 65,000 additional shares of $1 par value common stock for $62 per share. - **May 10:** Purchases 6,000 shares of treasury stock for $65 per share. - **June 1:** 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 statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2024. *(Amounts to be deducted should be indicated by a minus sign.)* --- ### Power Drive Corporation #### Statement of Stockholders' Equity **For the Year Ended December 31, 2024** | | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Total Stockholders' Equity | |----|--------------|----------------------------|-------------------|----------------|----------------------------| | **Balance, January 1** | $100,000 | $5,500,000 | $3,000,000 | $0 | $8,600,000 | | **Issue common stock** | 65,000 | | | | | | **Purchase treasury stock** | | | | | | | **Declare dividends** | | | | | | | **Payment of cash dividends** | | | | | | | **Resell treasury stock** | | |
Transcribed Image Text:Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024: - **March 1:** Issues 65,000 additional shares of $1 par value common stock for $62 per share. - **May 10:** Purchases 6,000 shares of treasury stock for $65 per share. - **June 1:** 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 statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2024. *(Amounts to be deducted should be indicated by a minus sign.)* --- ### Power Drive Corporation #### Statement of Stockholders' Equity **For the Year Ended December 31, 2024** | | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Total Stockholders' Equity | |----|--------------|----------------------------|-------------------|----------------|----------------------------| | **Balance, January 1** | $100,000 | $5,500,000 | $3,000,000 | $0 | $8,600,000 | | **Issue common stock** | 65,000 | | | | | | **Purchase treasury stock** | | | | | | | **Declare dividends** | | | | | | | **Payment of cash dividends** | | | | | | | **Resell treasury stock** | | |
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