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 59,000 additional shares of $1 par value common stock for $56 per share.May 10 Purchases 5,400 shares of treasury stock for $59 per share. June 1 Declares a cash dividend of $1.70 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 2,700 shares of treasury stock purchased on May 10 for $64 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 59,000 additional shares of $1 par value common stock for $56 per share.May 10 Purchases 5,400 shares of treasury stock for $59 per share. June 1 Declares a cash dividend of $1.70 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 2,700 shares of treasury stock purchased on May 10 for $64 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
T1).
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 2021. Power Drive has
the following transactions affecting
stockholders' equity in 2021. March
1 Issues 59,000 additional shares of
$1 par value common stock for $56
per share.May 10 Purchases 5,400
shares of treasury stock for $59 per
share.June 1 Declares a cash
dividend of $1.70 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 2,700 shares of
treasury stock purchased on May 10
for $64 per share.
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