Refer to the information in E109 Power Drive Corporation has the following beginning balances in its stockholders equity accounts on January 1, 2015 Common Stock , $100,000 Additional Paid in Capital, $5,500,000 and Retained Earnings, $3,000,000 Net income for the year ended December 31, 2015, is $...

Power Drive Corporation Balance Sheet Stockholders Equity Sectio ...

Refer to the information in E109. Power Drive Corporation has the following beginning balances in its stockholders

Question:

Refer to the information in E10–9. Power Drive has the following beginning balances in its stockholders’ equity accounts on January 1, 2015: , $100,000; Additional Paid-in Capital, $5,500,000; and Retained Earnings, $3,000,000. Net income for the year ended December 31, 2015, is $700,000.
In E10–9, Power Drive 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 2015. Power Drive has the following transactions affecting stockholders’ equity in 2015.
March 1 Issues 65,000 additional shares of $1 common stock for $62 per share.
May 10 Repurchases 6,000 shares of treasury stock for $65 per share.
June 1 Declares a cash of $2.00 per share to all stockholders of record on June 15.
July 1 Pays the cash declared on June 1.
October 21 Reissues 3,000 shares of treasury stock purchased on May 10 for $70 per share.

Required:
Taking into consideration all of the transactions recorded in E10–9, prepare the stockholders’ equity section of the for Power Drive as of December 31, 2015.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...