Question

2 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 59,000 additional shares of $1 par value common stock for $56 per share. 10 Purchases 5,400 shares of treasury stock for $59 per share 1 Declares a cash dividend of $1.70 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) 1 Pays the cash dividend declared on June 1. March 10 Мay points June July October 21 Resells 2,700 shares of treasury stock purchased on May 10 for $64 per share. еВook Hint 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.) References

Answer 1

March 1,2021	Cash	3304000		=59000*56
	Common Stock		59000
	Additional paid in Capital		3245000
May 10,2021	Treasury Stock	318600		=5400*59
	Cash		318600
June 01,2021	Dividends	261120		=(100000+59000-5400)*1.70
	Dividends payable		261120
July 01,2021	Dividends payable	261120
	Cash		261120
October 21,2021	Cash	172800		=2700*64
	Treasury stock		159300	=2700*59
	Additional paid in Capital		13500