Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. March 1 Issues 53,000 additional shares of $1 par value common stock for $50 per share. Purchases 4,800 shares of treasury stock for $53 per share. Declares a cash dividend of $1.40 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 2,400 shares of treasury stock purchased on May 10 for $58 per share. May 10 June 1 Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $4,300,000; and Retained Earnings, $1,800,000. Net income for the year ended December 31, 2024, is $580,000. Required: Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) Balance, January 1 Issue common stock Purchase treasury stock Declare dividends Payment of cash dividends Resell treasury stock Net income Balance December 31 $ POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2024 Additional Paid-in Capital $ 4,300,000 $ 1,800,000 $ 2,597,000 Common Stock 100,000 53,000 Answer is not complete. 153.000 6.897.000 Retained Earnings 1.800.000 Treasury Stock 0 139,200 139 200 Total Stockholders' Equity $ 6,200,000 8 989 200
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. March 1 Issues 53,000 additional shares of $1 par value common stock for $50 per share. Purchases 4,800 shares of treasury stock for $53 per share. Declares a cash dividend of $1.40 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 2,400 shares of treasury stock purchased on May 10 for $58 per share. May 10 June 1 Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $4,300,000; and Retained Earnings, $1,800,000. Net income for the year ended December 31, 2024, is $580,000. Required: Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) Balance, January 1 Issue common stock Purchase treasury stock Declare dividends Payment of cash dividends Resell treasury stock Net income Balance December 31 $ POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2024 Additional Paid-in Capital $ 4,300,000 $ 1,800,000 $ 2,597,000 Common Stock 100,000 53,000 Answer is not complete. 153.000 6.897.000 Retained Earnings 1.800.000 Treasury Stock 0 139,200 139 200 Total Stockholders' Equity $ 6,200,000 8 989 200
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 84PSA: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...
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