Question

Power Drive Corporation dosigns and produces a ine of goll equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2018 Power Drive has the following transactions affecting stockholders equity in 2018. March 1 Issues 56,000 additional shares of $1 par value common stock for $53 per share. May 10 Repurchases 5,100 shares of treasury stock for $56 per share June 1 Declares a cash dividend of $1.55 per share to all stockholders of record on June 15. (Hint July 1 Pays the cash dividend declared on June 1 October 21 Reissues 2,550 shares of treasury stock purchased on May 10 for $61 per share, Dividends are not paid on treasury stock) Power Drive Corporation has the following beginning balances in ts stockholders' equity accounts on January 1, 2018 Common Stock, $100,000, Additional Paid-in Capital, $4,600,000, and Retained Earnings, $2,100,000. Net income foor the year ended December 31, 2018, is $610,000. Required: Prepare the statement of stockholders equty for Power Drive Corporation for the year ended December 31, 2018. (Amounts to be deducted should be indioated by a minus sign.) POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2018 Total Additional Paid-in Capital Retained Common Stock Treasury Stock Stockholders Earnings Equity 2.100,000 Balance, January 1 Issued common stock Purchase breasury stock Dividends 100,000 4,600,000 $ 0$ 6.800.000 Sale of treasury stock Net income Balance, December 31

Answer 1

Statement of Stockholder's equity

For the year ended December 31,2018

	Common Stock	Additional paid in Capital	Retained earnings	Treasury Stock	total Stockholder's equity
Balance, January 1	100000	4600000	2100000		6800000
Issued common Stock	56000	2912000			2968000
Purchase treasury stock				-285600	-285600
Dividend			-233895		-233895
Sale of treasury Stock		12750		142800	155550
Net income			610000		610000
Balance December 31	156000	7524750	2476105	-142800	10014055