Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outst as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. March 1 May 10 June 1 July 1 Issues 48,000 additional shares of $1 par value common stock for $45 per share. Purchases 4,300 shares of treasury stock for $48 per share. Declares a cash dividend of $1.15 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) Pays the cash dividend declared on June 1. October 21 Resells 2,150 shares of treasury stock purchased on May 10 for $53 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, $3,800,000; and Retained Earnings, $1,300,000. Net income for the year ended December 31, 2024, is $530,000. Required: Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outst as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. March 1 May 10 June 1 July 1 Issues 48,000 additional shares of $1 par value common stock for $45 per share. Purchases 4,300 shares of treasury stock for $48 per share. Declares a cash dividend of $1.15 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) Pays the cash dividend declared on June 1. October 21 Resells 2,150 shares of treasury stock purchased on May 10 for $53 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, $3,800,000; and Retained Earnings, $1,300,000. Net income for the year ended December 31, 2024, is $530,000. Required: Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.
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 48,000 additional shares of $1 par value common stock for $45 per share.
Purchases 4,300 shares of treasury stock for $48 per share.
Declares a cash dividend of $1.15 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.)
Pays the cash dividend declared on June 1.
July 1
October 21 Resells 2,150 shares of treasury stock purchased on May 10 for $53 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, $3,800,000; and Retained Earnings, $1,300,000. Net income for the year ended December 31, 2024, is $530,000.
Required:
Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2024.
Note: Amounts to be deducted should be indicated by a minus sign.
Answer is not complete.
POWER DRIVE CORPORATION
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' Equity:
Common Stock
Treasury Stock
Additional Paid-in Capital
Total Paid-in Capital
Dividends
Retained Earnings
Total Stockholders' Equity
$
$
2,260,000 X
(92,450) X
3,800,000
5,967,550
(165,255) X
1,830,000
7,632,295
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