Chapter 10 Problems (Graded) Saved Help Save & 4 125 points Skloped Ask Print Deferences 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 July 1 Issues 50,000 additional shares of $1 par value common stock for $47 per share. 10 Purchases 4,500 shares of treasury stock for $50 per share. 1 Declares a cash dividend of $1.25 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. October 21 Resells 2,250 shares of treasury stock purchased on May 10 for $55 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, $4,000,000, and Retained Earnings, $1,500,000. Net income for the year ended December 31, 2021, is $550,000. 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 Common Stock Paid-in Capital Additional Retained Earnings Total Balance, January 1 $ 100,000 $ 4,000,000 $ 1,500,000 $ 0 $ Treasury Stock Stockholders Equity 5,600,000 Issue common stock Purchase treasury stock Declare dividends Resell treasury stock Net income Balance, December 311 $ 100.000 4,000,000 1.500.000 0 $ 5.600.000