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 58,000 additional shares of $1 par value common stock for $55 per share May 10 Repurchases 5,300 shares of treasury stock for $58 per share. June 1 Declares a cash dividend of $1.65 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 Relssues 2,650 shares of treasury stock purchased on May 10 for $63 per share n Stock, $100,000 Additional Paid-in Capital. $4,800,000: and Power Drive Corporation has the following beginning balances in its stockholders equity accounts on January 1. 201 Retained Earnings, $2,300,000. Net income for the year ended December 31, 2018, is $630.000 Required: Prepare the stockholders equity section of the balcesheet for Power D ive Corporation as of December 31. 2018. (Amounts to be deducted should be indicated by a minus sign.) POWER DRIVE CORPORATION Balance Sheet (Stockholders Equity Soction) December 31, 2018 Stockholders equity: Common stock Additional paid-in capital 58,000 58,000 Total paid-in capital etained earning reasury stock 58,000

Answer 1

	Power Drive Corporation
	Statement of Stockholder's Equity
	for the year ended December 31,2018
		Additional	Retained	Treasury	total
	Common	paid in	Earnings	stock	Stockholders
	Stock	capital			Equity
Balance,January 1	100,000	4,800,000	2,300,000	0	7,200,000
Issued common stock	58,000	3132000	0	0	3,190,000
purchase treasury stock				-307400	-307400
Dividends			-251955		-251955
Sale of Treasury stock		13,250		153700	166950
Net Income			630,000		630,000
Balance,December 31	158,000	7,945,250	2,678,045	-153,700	10,627,595

Stockholder's equity
common stock	158000
Additional paid in capital	7,945,250
Total paid in capital	8,103,250
Retained earnings	2,678,045
Less: Treasury stock	(153700)
Total Stockholder's equity	10,627,595