Exercise 10-12 Prepare a statement of stockholders\' equity (LOO Power Drive Cor
ID: 2581245 • Letter: E
Question
Exercise 10-12 Prepare a statement of stockholders' equity (LOO Power Drive Corporation designs and produces a line o goftl quipment and gol apparel. Power Drive has 100,000 shares Drive has the following transactions affecting stockholders' equity in 2018. of common stock outstanding as of the beginning of 2018. Power March 1 Issues 45,000 additional shares of $1 par value common stock for $42 per share May 10 Repurchases 4,000 shares of treasury stock for $45 per share. June 1 Declares a cash dividend of $1,00 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 October 21 Reissues 2,000 shares of treasury stock purchased on May 10 for $50 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on Retained Earnings, $1,000,000. Net income for the year ended December 31, 2018, is $500,000 January 1,2018: Common Stock, st100,000, Adsitional Paid-in Capital, $3,500,000; and Required: Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2018.(Amounts to be deducted should be indicated by a minus sign) DRIVE Statement of Stookholders' Equity For the Year Ended December 31, 2018 Total PaidinCapial Ranined Treasury Stock stockboiders Common Stock Paid-in Capital 100,000 3,500,0001,000,000 4,600,000 Balance, January 1 Issued common stock Purchase treasury stock Dividends Sale of treasury stock Net income alance, December 31Explanation / Answer
Prepare statement of shareholder's equity ;
Common stock Additional paid in capital Retained earnings Treasury stock Total shareholder's equtiy Balance January 1 100000 3500000 1000000 4600000 Issue common stock 45000 1845000 1890000 Purchae treasury stock (180000) (180000) Dividends (141000) (141000) Sale of treasury stock 10000 90000 100000 Net income 500000 500000 Closing balance 145000 5355000 1359000 (90000) 6769000Related Questions
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