5 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 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. 10 March 1 May 10 points eBook Hint June 1 July 1 Issues 59,000 additional shares of $1 par value common stock for $56 per share. Purchases 5,400 shares of treasury stock for $59 per share. 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.) Pays the cash dividend declared on June 1. October 21 Resells 2,700 shares of treasury stock purchased on May 10 for $64 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $4,900,000; and Retained Earnings, $2,400,000. Net income for the year ended December 31, 2024, is $640,000. Required: Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign. References POWER DRIVE CORPORATION Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Common Stock Additional Paid-in Capital Total Paid-in Capital Treasury Stock $ 159,000 8,145,000 8,304,000 (145,800) Retained Earnings 2,769,700 Total Stockholders' Equity $ 10,927,900 Check my work
5 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 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. 10 March 1 May 10 points eBook Hint June 1 July 1 Issues 59,000 additional shares of $1 par value common stock for $56 per share. Purchases 5,400 shares of treasury stock for $59 per share. 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.) Pays the cash dividend declared on June 1. October 21 Resells 2,700 shares of treasury stock purchased on May 10 for $64 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $4,900,000; and Retained Earnings, $2,400,000. Net income for the year ended December 31, 2024, is $640,000. Required: Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign. References POWER DRIVE CORPORATION Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Common Stock Additional Paid-in Capital Total Paid-in Capital Treasury Stock $ 159,000 8,145,000 8,304,000 (145,800) Retained Earnings 2,769,700 Total Stockholders' Equity $ 10,927,900 Check my work
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:5
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 2024. Power Drive has the following transactions affecting stockholders' equity in 2024.
10
March 1
May 10
points
eBook
Hint
June 1
July 1
Issues 59,000 additional shares of $1 par value common stock for $56 per share.
Purchases 5,400 shares of treasury stock for $59 per share.
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.)
Pays the cash dividend declared on June 1.
October 21 Resells 2,700 shares of treasury stock purchased on May 10 for $64 per share.
Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock,
$100,000; Additional Paid-in Capital, $4,900,000; and Retained Earnings, $2,400,000. Net income for the year ended December 31,
2024, is $640,000.
Required:
Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2024.
Note: Amounts to be deducted should be indicated by a minus sign.
References
POWER DRIVE CORPORATION
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' Equity:
Common Stock
Additional Paid-in Capital
Total Paid-in Capital
Treasury Stock
$
159,000
8,145,000
8,304,000
(145,800)
Retained Earnings
2,769,700
Total Stockholders' Equity
$ 10,927,900
Check my work
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