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.

  

   

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 $570,000.

  

Prepare the stockholders’ equity section of the balance sheet for Power Drive Corporation as of December 31, 2015

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.

Explanation / Answer

Answer:

Date Account titles Debit Credit Mar-01 By Cash 2548000 (52,000*$49) To Common stock 52000 To Additional Paid in capital - Common stock 2496000 May-10 By Treasury Stock 244400 (4,700*$52) To Cash 244400 Jun-01 By Dividends 198855 (100000+52000-4700)*$1.35 To Dividend Payble 198855 Jul-01 By Dividend Payble 198855 To Cash 198855 Oct-21 By Cash 133950 (2,350*$57) To Treasury Stock 115150 (2,350*$49) To Additional paid in Capital - Treasury Stock 18800 (2,350*$8)

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.