Question

California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $27 per share. Later in the year, the company decides to purchase 100 shares at a cost of $30 per share. Record the transaction if California Surf resells the 100 shares of treasury stock at $32 per share. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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 64,000 additional shares of $1 par value common stock for $61 per share.
May		10		Purchases 5,900 shares of treasury stock for $64 per share.
June		1		Declares a cash dividend of $1.95 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 2,950 shares of treasury stock purchased on May 10 for $69 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.)

On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 29,000, $20 par, common shares. The market price of the common stock is $49 on this date.

Required:
1. 2. & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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 64,000 additional shares of $1 par value common stock for $61 per share.
May		10		Purchases 5,900 shares of treasury stock for $64 per share.
June		1		Declares a cash dividend of $1.95 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 2,950 shares of treasury stock purchased on May 10 for $69 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, $5,400,000; and Retained Earnings, $2,900,000. Net income for the year ended December 31, 2021, is $690,000.

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 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 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 2,800 shares of treasury stock purchased on May 10 for $66 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, $5,100,000; and Retained Earnings, $2,600,000. Net income for the year ended December 31, 2021, is $660,000.

Required:
Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Required information

[The following information applies to the questions displayed below.]

Financial information for Forever 18 includes the following selected data:

($ in millions except share data)	2021		2020
Net income	$	180	$	270
Dividends on preferred stock	$	33	$	24
Average shares outstanding (in millions)		225		375
Stock price	$	11.32	$	10.27

Required:
1-a. Calculate earnings per share in 2020 and 2021. (Enter your answers in millions (i.e. 5,500,000 should be entered as 5.5).)

equired information

[The following information applies to the questions displayed below.]

Financial information for Forever 18 includes the following selected data:

($ in millions except share data)	2021		2020
Net income	$	180	$	270
Dividends on preferred stock	$	33	$	24
Average shares outstanding (in millions)		225		375
Stock price	$	11.32	$	10.27

2-a. Calculate the price-earnings ratio in 2020 and 2021. (Enter your Price-earning ratio values to two decimal places. Enter your answers in millions (i.e. 5,550,000 should be entered as 5.55).)

Answer 1

Answer to Question 1.

Account Title and Explanation	Debit	Credit
Treasury Stock (100 * $30)	3,000
Cash		3,000
(Record purchase of Treasury Stock)
Cash (100 * $32)	3,200
Treasury Stock (100 * $30)		3,000
Additional Paid-in capital - Treasury Stock		200
(Record sale of Treasury Stock)