Power Drive Corporation designs and produces a line of golf equipment and golf a

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 2015. Power Drive has the following transactions affecting Stockholders' equity in 2015. Issues 46,000 additional shares of $1 par value common stock for $43 per share. Repurchases 4,100 shares of treasury stock for $46 per share. Declares a cash dividend of $1.05 per share to all stockholders of record on June 15. (Dividends are not paid on treasury stock.)Pays the cash dividend declared on June Reissues 2,050 shares of treasury stock purchased on May 10 for $51 per share. Required: Record each of these transactions. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) Issues 46,000 additional shares of $1 par value common stock for $43 per share. Record the transaction. Journal E Repurchases 4,100 shares of treasury stock for $46 per share. Record the transaction. Declares a cash dividend of $1.05 per share to all stockholders of record on June 15. (Dividends are not paid on treasury stock.) Record the transaction. Pays the cash dividend declared on June 1. Record the transaction. Reissues 2,050 shares of treasury stock purchased on May 10 for $51 per share. Record the transaction. = journal entry has been entered

Explanation / Answer

Date Title Debit credit mar 1 cash (46000 *43) 1,978,000 common stock (46000*1) 46000 Additional paid in capital -common stock (46000*42) 1,932,000 [being common stock issued] may10 Treasury stock (4100*46) 188,600 cash 188,600 [being stock repurchased] june 1 cash Dividend 148995 Dividend payable 148995 [being dividend declared on shares outstanding (100000+46000-4100)= 141900*1.05 july 1 Dividend payable 148995 cash 148995 [dividend paid] oct21 cash (2050*51) 104550 Treasury stock   (2050*46) 94300 Additional paid in capital -treasury stock 10250

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