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 2021. Power Drive has the following transactions affecting stockholders' equity in 2021. March 1 Issues 61,000 additional shares of $1 par value common stock for $58 per share. May 10 Purchases 5,600 shares of treasury stock for $61 per share. June 1 Declares a cash dividend of $1.80 per share
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 2021. Power Drive has the following transactions affecting stockholders' equity in 2021. March 1 Issues 61,000 additional shares of $1 par value common stock for $58 per share. May 10 Purchases 5,600 shares of treasury stock for $61 per share. June 1 Declares a cash dividend of $1.80 per share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 2021. Power Drive has the following transactions affecting
| March | 1 | Issues 61,000 additional shares of $1 par value common stock for $58 per share. | ||
| May | 10 | Purchases 5,600 shares of |
||
| June | 1 | Declares a cash dividend of $1.80 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 2,800 shares of treasury stock purchased on May 10 for $66 per share. |
Required:
Record each of these transactions. (If no entry is required for a particular transaction/event, select "No
Record the issuance of 61,000 additional shares of $1 par value common stock for $58 per share.
Options:
- No Journal Entry Required
- Accounts Payable
Accounts Receivable - Additional Paid-in Capital
- Advertising Expense
- Bonds Payable
- Cash
- Common Stock
- Delivery Expense
- Dividends
- Dividends Payable
- Entertainment Expense
- Gain
- Interest Expense
- Interest Receivable
- Interest Revenue
- Loss
- Notes Payable
- Notes Receivable
Preferred Stock - Rent Expense
- Repairs and Maintenance Expense
Retained Earnings - Salaries Expense
- Sales Revenue
- Service Fee Expense
- Service Revenue
- Stock Dividends
- Supplies
- Supplies Expense
- Treasury Stock
- Utilities Expense
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