Question

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 61,000 additional shares of $1 par value common stock for $58 per share. May 10 Purchases 5,600 shares of treasury stock for $61 per share. June 1 Declares a cash dividend of $1.80 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 2,800 shares of treasury stock purchased on May 10 for $66 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, $5,100,000; and Retained Earnings, $2,600,000. Net income for the year ended December 31, 2021, is $660,000 ces 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

Answer 1

			Power Drive Corporation
		Statement of Stockholder's Equity
		for the year ended December 31,2018
				Addittional	Retained	Treasury	total
			Common	paid in	Earnings	stock	Stockholders
			Stock	capital			Equity
Balance,January 1			100,000	5,100,000	2,600,000	0	7,800,000
Issued common stock			61,000	3477000	0	0	3,538,000
purchase treasury stock						-341600	-341600
Dividends					-279720		-279720
Sale of Treasury stock				14,000		170800	184800
Net Income					660,000		660000
Balance,December 31			161,000	8,591,000	2,980,280	-170,800	11,561,480
		dividends = 100,000+61000-5600
			155400	shares on which dividend is declared