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 stockholdersâequity for Power Drive Corporation for the year ended December 31,2015.
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 stockholdersâequity for Power Drive Corporation for the year ended December 31,2015.
