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. additional shares of $1 par value common stock for S49 per share. Repurchases 4,700 shares of treasury stock for $52 per share. Declares a cash dividend of S1.35 per share to all stockholders of record on June 15. Pays the cash dividend declared on June 1. Reissues 2,350 shares of treasury stock purchased on May 10 for S57 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2015: Common Stock, $100,000; Additional Paid-in Capital, $4,200,000; and Retained Earnings, $1,700,000. Net income for the year ended December 31, 2015, is S570,000. Required: Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2015. (Amounts to be deducted should be indicated by a minus sign.) 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 59,000 additional shares of $1 par value common stock for $56 per share. Repurchases 5,400 shares of treasury stock for S59 per share. Declares a cash dividend of $1.70 per share to all stockholders of record on June 15. Pays the cash dividend declared on June 1. Reissues 2,700 shares of treasury stock purchased on May 10 for $64 per share. January 1, 2015: 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, 2015, is $640,000. Required: Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2015. (Amounts to be deducted should be indicated by a minus sign.)

Explanation / Answer

Power Drive Corporation Balance Sheet   StockHolders Equity Dec 31.2015. StockHolders Equity Amt $ Common Stock($1 par , 152000 issued)                         152,000 Additional Paid In capital in excess of par -Common Stock                     6,696,000 Additional Paid In capital from sale of Treasury Stock                           11,750 Total Paid in Capital Retained Earning                     2,071,145 Treasury Stock(2350 nos @$52)                       (122,200) Total StockHolders Equity                     8,808,695 APIC=52000 new shares @48 Dividend on 147300 shares @1.35 Power Drive Corporation Balance Sheet   StockHolders Equity Statement Dec 31.2015. StockHolders Equity Transactions Common Stock Additional Paid In capital in excess of par -Common Stock Retained Earning Treasury Stock Additional Paid In capital from sale of Treasury Stock Total Stock holders Equity Balance Jan 1 2015.                         100,000 4,900,000        2,400,000            7,400,000 Issue common stock                           59,000 3,245,000            3,304,000 Purchase treasury stock         (318,600)              (318,600) Cash dividends          (261,120)              (261,120) Sale of treasury stock            159,300             13,500                172,800 Net income            640,000                640,000 Balance Dec 31. 2015.                         159,000 8,145,000        2,778,880         (159,300)             13,500          10,937,080

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