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 57,000 additional shares of $1 par value common stock for $54 per share. Purchases 5,200 shares of treasury stock for $57 per share. Declares a cash dividend of $1.60 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 2,600 shares of treasury stock purchased on May 10 for $62 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, $4,700,000, and Retained Earnings, $2,200,000. Net income for the year ended December 31, 2024, is $620,000. 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 POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2024 $ Additional Paid-in Capital 100,000 $ 4,700,000 Common Stock Total Treasury Stock Stockholders' Equity 7,000,000 Retained Earnings $ 2,200,000 $ 0 $
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 57,000 additional shares of $1 par value common stock for $54 per share. Purchases 5,200 shares of treasury stock for $57 per share. Declares a cash dividend of $1.60 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 2,600 shares of treasury stock purchased on May 10 for $62 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, $4,700,000, and Retained Earnings, $2,200,000. Net income for the year ended December 31, 2024, is $620,000. 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 POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2024 $ Additional Paid-in Capital 100,000 $ 4,700,000 Common Stock Total Treasury Stock Stockholders' Equity 7,000,000 Retained Earnings $ 2,200,000 $ 0 $
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 57,000 additional shares of $1 par value common stock for $54 per share.
Purchases 5,200 shares of treasury stock for $57 per share.
Declares a cash dividend of $1.60 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 2,600 shares of treasury stock purchased on May 10 for $62 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, $4,700,000, and Retained Earnings, $2,200,000. Net income for the year ended December 31,
2024, is $620,000.
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
POWER DRIVE CORPORATION
Statement of Stockholders' Equity
For the Year Ended December 31, 2024)
$
Additional
Paid-in Capital
100,000 $ 4,700,000
Common Stock
Total
Treasury Stock Stockholders'
Equity
7,000,000
Retained
Earnings
$ 2,200,000 $
0 $
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