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March 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
March 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. 1 Issues 65,00 additional shares of $1 par value connon stock for $62 per share. May 10 Purchases 6,000 shares of treasury stock for $65 per share June 1 Declares a cach dividend of $2.00 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 31 Rerells 3,000 shares of treasury stock purchased on May 10 for $20 pur 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, $5.500,000, and Retained Earnings. $3,000,000. Net income for the year ended December 31, 2021, is $700,000. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $100,000Additional Paid in Capital, $5.500,000, and Retained Earings. $3,000,000. Net income for the year ended December 31 2021. is $700,000 Required: Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) POWER DRIVE CORPORATION Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity Total Paid in Capital Total Stockholders' Equity $ 0
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