Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of commor stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. Issues 50,000 additional shares of $1 par value common stock for $47 per share. Purchases 4,500 shares of treasury stock for $50 per share. Declares a cash dividend of $1.25 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 2,250 shares of treasury stock purchased on May 10 for $55 per share. March 1 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, $4,000,000; and Retained Earnings, $1,500,000. Net income for the year ended December 31, 2024, is $550,000.
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of commor stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. Issues 50,000 additional shares of $1 par value common stock for $47 per share. Purchases 4,500 shares of treasury stock for $50 per share. Declares a cash dividend of $1.25 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 2,250 shares of treasury stock purchased on May 10 for $55 per share. March 1 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, $4,000,000; and Retained Earnings, $1,500,000. Net income for the year ended December 31, 2024, is $550,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
May 10
June 1
Issues 50,000 additional shares of $1 par value common stock for $47 per share.
Purchases 4,500 shares of treasury stock for $50 per share.
Declares a cash dividend of $1.25 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 2,250 shares of treasury stock purchased on May 10 for $55 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, $4,000,000; and Retained Earnings, $1,500,000. Net income for the year ended December 31,
2024, is $550,000.
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 NOCARBONATO
$
POWER DRIVE CORPORATION
Statement of Stockholders' Equity
For the Year Ended December 31, 2024
Common Stock
$
Additional
Paid-in Capital
100,000 $4,000,000 $
100,000
4,000,000
Total
Treasury Stock Stockholders'
Equity
0 $ 5,600,000
Retained
Earnings
1,500,000 $
1,500,000
0 $ 5,600,000
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