ezto.mheducation.com Power Drive Corporation designs and produces a line of golf
ID: 2524125 • Letter: E
Question
ezto.mheducation.com 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 58,000 additional shares of $1 par value common stock for $55 per share. Repurchases 5,300 shares of treasury stock for $58 per share. Declares a cash dividend of $1.65 per share to all stockholders of record on June 15. (Hint Dividends are not paid on treasury stock.) Pays the cash dividend declared on June1 Reissues 2,650 shares of treasury stock purchased on May 10 for $63 per share. March May June 1 10 1 July 1 October 21 Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on $2,300,000. Net income for the year ended December 31, 2015, is $630,000 January 1, 2015: Common Stock, $100,000; Additional Paid-in Capital, $4,800,000; and Retained Earnings, 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 Balance Sheet (Stockholders' Equity Section) December 31, 2015 Stockholders' equity Common stock Preferred stock Total paid-in capital Total stockholders' equity MacBook AExplanation / Answer
Power Drive Corporation
Balance Sheet ( Partial)
December 31, 2015
In the books of Power Drive Corporation :
Stockholders' Equity $ Common Stock ( $ 1 par, 158,000 shares issued) 158,000 Additional Paid-in Capital : Common Stock 7,932,000 Paid-in Capital : Treasury Stock 13,250 Retained Earnings 2,678,045 Treasury Stock ( at cost) (153,700) Total Stockholders' Equity $ 10,627,595Related Questions
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