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
March | 1 | Issues 46,000 additional shares of $1 par value common stock for $43 per share. | ||
May | 10 | Purchases 4,100 shares of treasury stock for $46 per share. | ||
June | 1 | Declares a cash dividend of $1.05 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 2,050 shares of treasury stock purchased on May 10 for $51 per share. |
Power Drive Corporation has the following beginning balances in its
stockholders' equity accounts on January 1, 2021: Common Stock,
$100,000; Additional Paid-in Capital, $3,600,000; and Retained
Earnings, $1,100,000. Net income for the year ended December 31,
2021, is $510,000.
Required:
Prepare the stockholders' equity section of the balance sheet for
Power Drive Corporation as of December 31, 2021. (Amounts
to be deducted should be indicated by a minus sign.)
Power Drive Corporation | ||||
Balance sheet | ||||
(Stockholder's Equity Section) | ||||
At December 31, 2021 | ||||
Stockholder's Equity: | ||||
Common stock | $ 1,46,000 | |||
Additional Paid - in - Capital | $ 55,42,250 | |||
Total Paid - in Capital | $ 56,88,250 | |||
Retained earnings | $ 14,61,005 | |||
Treasury Stock | $ -94,300 | |||
Total Stockholder's Equity | $ 70,54,955 | |||
Workings: | ||||
Paid in capital in excess of par value, Common stock (46000 X $42) | $ 19,32,000 | |||
Paid in capital in from sale of treasury stock [2050 X ($51-$46)] | $ 10,250 | |||
Additional Paid - in - Capital | $ 19,42,250 | |||
Dividend declared [(146000 - 4100) X $1.05] | $ 1,48,995 | |||
Treasury Stock [(4100-2050)*46] | $ 94,300 | |||
Beginning balance | Addition | Deduction | Ending balance | |
Common stock | $ 1,00,000 | $ 46,000 | $ 1,46,000 | |
Additional Paid - in - Capital | $ 36,00,000 | $ 19,42,250 | $ 55,42,250 | |
Retained earnings | $ 11,00,000 | $ 5,10,000 | $ 1,48,995 | $ 14,61,005 |
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive...
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. March 1 Issues 46,000 additional shares of $1 par value common stock for $43 per share. May 10 Purchases 4,100 shares of treasury stock for $46 per share. June 1 Declares a cash dividend of $1.05 per share to all...
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. March 1 Issues 63,000 additional shares of $1 par value common stock for $60 per share. May 10 Purchases 5,800 shares of treasury stock for $63 per share. June 1 Declares a cash dividend of $1.90 per share to all...
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. March 1 Issues 61,000 additional shares of $1 par value common stock for $58 per share. May 10 Purchases 5,600 shares of treasury stock for $61 per share. June 1 Declares a cash dividend of $1.80 per share to all...
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. March 1 Issues 65,000 additional shares of $1 par value common stock for $62 per share. May 10 Purchases 6,000 shares of treasury stock for $65 per share. June 1 Declares a cash dividend of $2.00 per share to all...
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. March 1 Issues 50,000 additional shares of $1 par value common stock for $47 per share. May 10 Purchases 4,500 shares of treasury stock for $50 per share. June 1 Declares a cash dividend of $1.25 per share to all...
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. March 1 Issues 48,000 additional shares of $1 par value common stock for $45 per share. May 10 Purchases 4,300 shares of treasury stock for $48 per share. June 1 Declares a cash dividend of $1.15 per share to all...
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. 1 Issues 53,000 additional shares of $1 par value common stock for $50 per share. May 10 Purchases 4,800 shares of treasury stock for $53 per share. June 1 Declares a cash dividend of $1.40 per share to all stockholders...
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. 1 Issues 65,000 additional shares of $1 par value common stock for $62 per share. 10 Purchases 6,000 shares of treasury stock for $65 per share. 1 Declares a cash dividend of $2.00 per share to all stockholders of record...
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. March 1 Issues 52,000 additional shares of $1 par value common stock for $49 per share. May 10 Purchases 4,700 shares of treasury stock for $52 per share. June 1 Declares a cash dividend of $1.35 per share to all...