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 points ау March Issues 58,000 additional shares of 31 par value common stock for $55 pel share 10 Purchases 5,300 shares of treasury stock for $58 per share. June Declares a cash dividend of $1.65 per here 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 2,650 shares of treasury stock purchased on May 10 for 563 per share. Required: Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.)

Answer 1

Date	Accounts				Debit	Credit
1-Mar	Cash				3190000
	common stock					58,000
	Addittional paid in capita					3132000
10-May	Treasury stock				307400
	cash					307,400
1-Jun	Cash dividend/Retained earnings				251955
	dividends payable					251,955
	(100000+58000-5300)*1.65
1-Jul	dividends payable				251,955
	cash					251,955
21-Oct	Cash				166950
	Treasury stock					153700
	Additional paid in capital - TS					13250