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 1 Issues 54,000 additional shares of $1 par value comon stock for $51 per share. May 10 Purchases 4,900 shares of treasury stock for $54 per share. June 1 Declares a cash dividend of $1.45 per share to att 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 2,450 shares of treasury stock purchased on May 10 for $59 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, $4,400,000; and Retained Earnings, $4900,000. Net income for the year ended December 31, 2021, is $590,000 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: Common Stock Total Paid-in Capital 0 Power Drive Corporation has the following beginning balance $100,000; Additional Paid-in Capital, $4,400,000; and Retaine 2021, is $590,000. Required: Prepare the stockholders' equity section of the balance sheet deducted should be indicated by a minus sign.) POWER DRIVE CORPORATION Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity: Common Stock Total Paid-in Capital 0 Total Stockholders' Equity $ 0 March May 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 46,000 additional shares of $1 par value common stock for $43 per share. 10 Purchases 4,100 shares of treasury stock for $46 per share. June 1 Declares a cash dividend of $1.95 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 2,85e shares of treasury stock purchased on May 10 for $51 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, $3,600,000; and Retained Earnings $1,100,000. Net income for the year ended December 31, 2021, is $510,000 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 Additional Retained Pald-in Capital Earnings Treasury Stock $ 100,000 $ 3,600,000 $ 1.100.000 $ 0 Total Stockholders Equity $ 4,800,000 Balance, January 1 issue common stock Purchase treasury stock Declare dividends Resell treasury stock Net Income Balance. December 31 5 100,000 3,600,000 1.100,000 0 $ 4.800.000
