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 49,000 additional shares of $1 par value common stock for $46 per share.
May 10 Repurchases 4,400 shares of treasury stock for $49 per share.
June 1 Declares a cash dividend of $1.20 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 2,200 shares of treasury stock purchased on
May 10 for $54 per share.
Power Drive Corporation has the following beginning balances in
its stockholders' equity accounts on January 1, 2018: Common Stock,
$100,000; Additional Paid-in Capital, $3,900,000; and Retained
Earnings, $1,400,000. Net income for the year ended December 31,
2018, is $540,000.
Required:
Prepare the statement of stockholders’ equity for Power Drive Corporation for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
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Prepare the statement of stockholders’ equity for Power Drive Corporation for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
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