Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 May June 1 Issues 60, 000 additional shares of $1 par value common stock for $57 per share. 10 Purchases 5,500 shares of treasury stock for $60 per share. 1 Declares a cash dividend of $1.75 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) 1 Pays the cash dividend declared on June 1. July October 21 Resells 2,750 shares of treasury stock purchased on May 10 for $65 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $100,000; Additional Paid-in Capital, $5,000,000; and Retained Earnings, $2,500,000. Net income for the year ended December 31, 2021, is $650,000. Required: Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2021 Additional Common Stock Paid-in Capital Total Stockholders' Equity Retained Earnings Treasury Stock Balance, January 1 $ 100,000 $ 5,000,000 $ 2,500,000 $ O $ 7,600,000 Issue common stock 60,000 Purchase treasury stock Declare dividends Resell treasury stock Net income Balance, December 31 $ 160,000 5,000,000 2,500,000 O $ 7,660,000

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 May June 1 Issues 60, 000 additional shares of $1 par value common stock for $57 per share. 10 Purchases 5,500 shares of treasury stock for $60 per share. 1 Declares a cash dividend of $1.75 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) 1 Pays the cash dividend declared on June 1. July October 21 Resells 2,750 shares of treasury stock purchased on May 10 for $65 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $100,000; Additional Paid-in Capital, $5,000,000; and Retained Earnings, $2,500,000. Net income for the year ended December 31, 2021, is $650,000. Required: Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2021 Additional Common Stock Paid-in Capital Total Stockholders' Equity Retained Earnings Treasury Stock Balance, January 1 $ 100,000 $ 5,000,000 $ 2,500,000 $ O $ 7,600,000 Issue common stock 60,000 Purchase treasury stock Declare dividends Resell treasury stock Net income Balance, December 31 $ 160,000 5,000,000 2,500,000 O $ 7,660,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
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 stockholders' equity in 2021. March May June 1 Issues 60,000 additional shares of $1 par value common stock for $57 per share. 10 Purchases 5,500 shares of treasury stock for $60 per share. 1 Declares a cash dividend of $1.75 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) 1 Pays the cash dividend declared on June 1. July October 21 Resells 2,750 shares of treasury stock purchased on May 10 for $65 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $100,000; Additional Paid-in Capital, $5,000,000; and Retained Earnings, $2,500,000. Net income for the year ended December 31, 2021, is $650,000. Required: Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2021 Additional Paid-in Capital Retained Earnings Total Stockholders' Common Stock Treasury Stock Equity Balance, January 1 $ 100,000 S 5,000,000 $ 2,500,000 $ O $ 7,600,000 Issue common stock 60,000 Purchase treasury stock Declare dividends Resell treasury stock Net income Balance, December 31 $ 160.000 5,000,000 2,500,000 $ 7,660,000
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 May June 1 Issues 60,000 additional shares of $1 par value common stock for $57 per share. 10 Purchases 5,500 shares of treasury stock for $60 per share. 1 Declares a cash dividend of $1.75 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) 1 Pays the cash dividend declared on June 1. July October 21 Resells 2,750 shares of treasury stock purchased on May 10 for $65 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $100,000; Additional Paid-in Capital, $5,000,000; and Retained Earnings, $2,500,000. Net income for the year ended December 31, 2021, is $650,000. Required: Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2021 Additional Paid-in Capital Retained Earnings Total Stockholders' Common Stock Treasury Stock Equity Balance, January 1 $ 100,000 S 5,000,000 $ 2,500,000 $ O $ 7,600,000 Issue common stock 60,000 Purchase treasury stock Declare dividends Resell treasury stock Net income Balance, December 31 $ 160.000 5,000,000 2,500,000 $ 7,660,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Earning per share and Dilutive securities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS