Question

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 2018 Power Drive has the following transactions affecting stockholders equity in 2018. March 1 Issues 56.000 additional shares of 51 par value common stock for $53 per share May 10 Repurchases 5,100 shares of treasury stock for $56 per share June 1 Declares a cash dividend of $1.65 per share to al stockholders of record on June 15. (Hint Dividends are not paid on treasury sock) July 1 Pays the cash dividend declared on June 1 October 21 Reissue 2.650 shares of treasury stock purchased on May 10 for $61 per share Required: Record each of these transactions. If no entry is required for a particular transaction, select "No joumal entry required in the first account field.) View transaction St Journal entry worksheet 1 2 3 4 5 Issues 56,000 additional shares of si par value common stock for $53 per share Not Enter debits before credits General Journal Debit Credit

Answer 1

Date	General Journal	Debit	Credit
March 01, 2018	Cash	2968000
	Common stock		56000
	Paid-in Capital in Excess of Par		2912000
May 10, 2018	Treasury Stock	285600
	Cash		285600
June 1, 2018	Dividends	233895
	Dividends payable		233895
July 1, 2018	Dividends payable	233895
	Cash		233895
October 21, 2018	Cash	155550
	Treasury stock		142800
	Paid in capital - Treasury stock		12750