Required: Record each of these transactions. (If no entry is required for a part
ID: 2478576 • Letter: R
Question
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.)
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 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 63,000 additional shares of $1 par value common stock for $60 per share. Repurchases 5,800 shares of treasury stock for $63 per share. Declares a cash dividend of $1.90 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) Pays the cash dividend declared on June 1. Reissues 2,900 shares of treasury stock purchased on May 10 for $68 per share. March May June 1 10 1 July October 1 21 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.)Explanation / Answer
Journal Entries Date Account Title Debit Credit March 1,2015 Cash $37,80,000 Common stock $63,000 Additional paid in capital $37,17,000 (63000 shares issued at $60 per share) May 10,2015 Treasury stock 365400 Cash 365400 (Repurchase of 5800 shares of treasury stock at $63 per share) June 1,2015 Retained earnings 298680 Dividend payable 298680 (declares cash dividend of $1.90 per share , total shares outstanding on record date June 15 was 157200 shares) July 1,2015 Dividend payable 298680 Cash 298680 (dividend paid to common stockholders) October 21,2015 Cash 197200 Treasury stock 182700 Additional paid in capital 14500 (reissue pf 2900 shares of treasury stock at $68 per share)
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