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 51,000 additional shares of $1 par value common stock for $48 per share. May 10 Purchases 4,600 shares of treasury stock for $51 per share. June 1 Declares a cash dividend of $1.30 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 2,300 shares of treasury stock purchased on May 10 for $56 per share. 0.5/1 points awarded Scored 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, $4,100,000; and Retained Earnings, $1,600,000. Net income for the year ended December 31, 2021, is $560,000. eBook Hint 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.) Print References POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2021 Additional Common Retained Pald-in Treasury Stock Earnings Capital Stock Balance, January 1 $ 100,000 $4,100,000 $ 1,600,000 $ 0 Issue common stock 51,000 2,397,000 Purchase treasury stock 234,600 Declare dividends (190,320) Resell treasury stock Net income 11,500 X (117,300) Balance, December 31 $ 151,000 6,508,500 1,409,680 1 17,300 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Total Stockholders' Equity $ 5,800,000 2,448,000 (234,600) (190,320) 128,800 X 8,186,480 $ Exercise 10-5A Record common stock, preferred stock, and dividend transactions (LO10-2, 10-3, 10-5) Italian Stallion has the following transactions during the year related to stockholders' equity. 0.79/1 points awarded February 1 Issues 4,000 shares of no-par common stock for $14 per share. May 15 Issues 200 shares of $10 par value, 2.5% preferred stock for $11 per share. October 1 Declares a cash dividend of $0.25 per share to all stockholders of record (both common and preferred) on October 15. October 15 Date of record. October 31 Pays the cash dividend declared on October 1. Scored eBook Required: Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Hint Print No General Journal Credit Date February 01 References 56,000 Cash Common Stock 56,000 May 15 2,200 Cash Preferred Stock Additional Paid-in Capital 2,000 200 3 October 01 4,040 X Dividends Dividends Payable OOO OO OOO 4,040 October 15 No Journal Entry Required October 31 4,040 Dividends Payable Cash 4,040 X
