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Power Drive Corporation designs and produces a line of golfequipment and golf apparel. Power Drive has 100,000 shares ofcommon stock outstanding as of the beginning of 2015. Power Drivehas the following transactions affecting stockholders’ equity in2015. March 1 Issues 64,000 additional shares of $1 par valuecommon stock for $61 per share. May 10 Repurchases 5,900 shares oftreasury stock for $64 per share. June 1 Declares a cash dividendof $1.95 per share to all stockholders of record on June 15. (Hint:Dividends are not paid on treasury stock.) July 1 Pays the cashdividend declared on June 1. October 21 Reissues 2,950 shares oftreasury stock purchased on May 10 for $69 per share. Power DriveCorporation has the following beginning balances in itsstockholders’ equity accounts on January 1, 2015: Common Stock,$100,000; Additional Paid-in Capital, $5,400,000; and RetainedEarnings, $2,900,000. Net income for the year ended December 31,2015, is $690,000. Required: Prepare the stockholders’ equitysection of the balance sheet for Power Drive Corporation as ofDecember 31, 2015.

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Patrina Schowalter
Patrina SchowalterLv2
28 Sep 2019

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Power Drive Corporation designs and produces a line of golfequipment and golf apparel. Power Drive has 100,000 shares ofcommon stock outstanding as of the beginning of 2015. Power Drivehas the following transactions affecting stockholders' equity in2015. March 1 Issues 58,000 additional shares of $1 par valuecommon stock for $55 per share. May 10 Repurchases 5,300 shares oftreasury stock for $58 per share. June 1 Declares a cash dividendof $1.65 per share to all stockholders of record on June 15. (Hint:Dividends are not paid on treasury stock.) July 1 Pays the cashdividend declared on June 1. October 21 Reissues 2,650 shares oftreasury stock purchased on May 10 for $63 per share. Power DriveCorporation has the following beginning balances in itsstockholders' equity accounts on January 1, 2015: Common Stock,$100,000; Additional Paid-in Capital, $4,800,000; and RetainedEarnings, $2,300,000. Net income for the year ended December 31,2015, is $630,000. Required: Prepare the statement of stockholders’equity for Power Drive Corporation for the year ended December 31,2015.

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 2018. Power Drive has the following transactions affecting stockholders' equity in 2018.

March 1 Issues 61,000 additional shares of $1 par value common stock for $58 per share.

May 10 Repurchases 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 Reissues 2,800 shares of treasury stock purchased on May 10 for $66 per share.


Required:

Record each of these transactions. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

National League Gear has two classes of stock authorized: 5%,$20 par preferred, and $5 par value common. The followingtransactions affect stockholders’ equity during 2015, NationalLeague’s first year of operations: February 2 Issue 1.1 millionshares of common stock for $24 per share. February 4 Issue 490,000shares of preferred stock for $24 per share. June 15 Repurchase110,000 shares of its own common stock for $19 per share. August 15Reissue 82,500 shares of treasury stock for $34 per share. November1 Declare a cash dividend on its common stock of $1.10 per shareand a $490,000 (5% of par value) cash dividend on its preferredstock payable to all stockholders on record on November 15. (Hint:Dividends are not paid on treasury stock.) November 30 Pay thedividends declared on November 1. Issue 1.10 million shares ofcommon stock for $24 per share. Record the transaction. Issue490,000 shares of preferred stock for $24 per share. Record thetransaction. Repurchase 110,000 shares of its own common stock for$19 per share. Record the transaction. Reissue 82,500 shares oftreasury stock for $34 per share. Record the transaction. Declare acash dividend on its common stock of $1.10 per share and a $490,000(5% of par value) cash dividend on its preferred stock payable toall stockholders on record on November 15. (Hint: Dividends are notpaid on treasury stock.) Record the declaration of cash dividends.Declare a cash dividend on its common stock of $1.10 per share anda $490,000 (5% of par value) cash dividend on its preferred stockpayable to all stockholders on record on November 15. (Hint:Dividends are not paid on treasury stock.). Record the entry on thedate of record. Issue 1.10 million shares of common stock for $24per share. Record the transaction. Issue 490,000 shares ofpreferred stock for $24 per share. Record the transaction.Repurchase 110,000 shares of its own common stock for $19 pershare. Record the transaction. Reissue 82,500 shares of treasurystock for $34 per share. Record the transaction. Declare a cashdividend on its common stock of $1.10 per share and a $490,000 (5%of par value) cash dividend on its preferred stock payable to allstockholders on record on November 15. (Hint: Dividends are notpaid on treasury stock.) Record the declaration of cash dividends.Declare a cash dividend on its common stock of $1.10 per share anda $490,000 (5% of par value) cash dividend on its preferred stockpayable to all stockholders on record on November 15. (Hint:Dividends are not paid on treasury stock.). Record the entry on thedate of record. Pay the dividends declared on November 1. Recordthe transaction.

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