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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rahul
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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 18 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-
$ 100,000
$ 100,000
Additional
Paid-in Capital
$
Retained
Earnings
5,500,000 $ 3,000,000 $
5,500,000
Total
Treasury Stock Stockholders'
Equity
8,600,000
3,000,000
0 $
0 $ 8,600,000
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