90.2K

Verified Solution

Link Copied!

Exercise 10-12A Prepare a statement of stockholders' equity (LO10-7) 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 53,000 additional shares of $1 par value common stock for $50 per share. 10 Purchases 4,800 shares of treasury stock for $53 per share. 1 Declares a cash dividend of $1.40 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 May June July October 21 Resells 2,400 shares of treasury stock purchased on May 18 for $58 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock $100,000, Additional Paid-in Capital, $4,300,000, and Retained Earnings, $1,800,000. Net income for the year ended December 31, 2021, is $580,000 Required: Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2021. (Amounts to be deducted should be indicated by e minus sign.) Answer is complete but not entirely correct. POWER DRIVE CORPORATION Statement of Stockholders Equity For the Year Ended December 31, 2021 Additional Paid-in Capital $ 4.300 000 Common Stock Total Stockholders Equity 6.200 000 Retained Earnings Treasury Stock Balance, January 1 100,000 s 1.000.000 0 Issue common stock 3,000 2,597 000 2,650,000 Purchase treasury stock 254.400 (254.000) Declare dividends (207.480) Resell treasury stock (207 480) 12.000 (127.200) Net income 139.200 680.000 2.172.520 500,000 Balance December 31 S 103 000 6909.000 127 200 9.311.720

Answer & Explanation Solved by verified expert

See Answer