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this is all I have so far Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000
this is all I have so far
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 56,000 additional shares of $1 par value common stock for $53 per share. 10 Purchases 5,100 shares of treasury stock for $56 per share. 1 Declares a cash dividend of $1.55 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. March May June July October 21 Resells 2,550 shares of treasury stock purchased on May 10 for $61 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, $4,600,000; and Retained Earnings, $2,100,000. Net income for the year ended December 31, 2021, is $610,000. 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 Total Additional Retained Common Stock Treasury Stock Stockholders' Paid-in Capital Earnings Equity Balance, January 1 2,100,000 $ 100,000 $ 4,600,000 $ 6,800,000 2,968,000 Issue common stock 56,000 2,912,000 (285,600) Purchase treasury stock (285,600) Declare dividends Resell treasury stock 12,750 142,800 155,550 610,000 Net income 610,000 (142,800) $ 7,524,750 Balance, December 31 156,000 2,710,000 10,247,950Step by Step Solution
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