Question

prepare the stockhilders equity section of the balance sheet

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. May March 1 Issues 48,000 additional shares of $1 par value common stock for $45 per share. 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 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 2,150 shares of treasury stock purchased on May 10 for $53 per share. Hint 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, $3,800,000; and Retained Earnings, $1,300,000. Net income for the year ended December 31, 2021, is $530,000 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 (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity Common Stock Additional Paid in Capital Total Paid in Capital < Prey 7 of 15

Answer 1

POWER DRIVE CORPORATION
BALANCE SHEET
(Stockholders’ Equity Section)
December 31, 2021
Stockholders’ Equity	Amount in $
Common Stock	$         148,000
Additional Paid-in capital	$      5,922,750
Total Paid-in capital	$      6,070,750
Retained Earnings	$      1,664,745
Treasury Stock	$       -103,200
Total Shareholders’ Equity	$      7,632,295
Particulars	Amount in $
Common Stock
Balance at beginning of the year	$         100,000
Stock issued during the year	$          48,000
Balance at end of the year	$         148,000
Additional Paid-in capital
Balance at beginning of the year	$      3,800,000
Stock issued during the year	$      2,112,000
Reissue of treasury stock in excess of cost	$          10,750
Balance at end of the year	$      5,922,750
Retained Earnings
Balance at beginning of the year	$      1,300,000
Net Income during the year	$         530,000
Dividends	$       -165,255
Balance at end of the year	$      1,664,745
Treasury Stock
Balance at beginning of the year	NIL
Repurchases	$       -206,400
Reissue	$         103,200
Balance at end of the year	$       -103,200