Question

• Record the issuance of 61,000 additional shares of $1 par value common stock for $58 per share.
• Record the purchase of 5,600 shares of treasury stock for $61 per share.
• Record the declaration of a cash dividend of $1.80 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.)
• Record payment of the cash dividend declared on June 1.
• Record the resale of 2,800 shares of treasury stock purchased on May 10 for $66 per share.
  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. 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. 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.) View transaction list Journal entry worksheet 2 3 4 5 Record the issuance of 61,000 additional shares of $1 par value common stock for $58 per share. Note: Enter debits before credits. General Journal Debit Credit Date March 01, 2021
  

Answer 1

Prepare the required journal entries as follows:

No	Accounts	Debit	Credit
Mar-01	Cash ( 61000 * 8)	488000
	Common stock		61000
	Additional paid in capital		427000
May-10	Treasury stock (5600*61)	341600
	Cash		341600
Jun-01	Cash dividend (155400 * 1.80)	279720
	Dividend payable		279720
Jul-01	Dividend payable	279720
	Cash		279720
Oct-21	Cash (2800*66)	184800
	Treasury stock (2800*61)		170800
	Additional paid in capital		14000