alue: 10.00 points Power Drive Corporation designs and produces a line of golf e

Question

alue: 10.00 points 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 peginning of 2018. Power Drive has the following transactions affecting stockholders' equity in 2018. March 1 Issues 47,000 additional shares of $1 par value common stock for $44 per share. May 10 Repurchases 4,200 shares of treasury stock for $47 per share. June 1 Declares a cash dividend of $1.10 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Reissues 2,100 shares of treasury stock purchased on May 10 for $52 per share. 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.) View transaction list Journal entry worksheet 2 3 4 5 Issues 47,000 additional shares of $1 par value common stock for $44 per share. Note: Enter debits before credits.

Explanation / Answer

Mar-01 Cash ($44*47,000) $ 2,068,000 Common stock ($1*47,000) $        47,000 Additional paid in capital - Common stock $ 2,021,000 May-10 Treasury stock ($47*4,200) $     197,400 Cash $     197,400 Jun-01 Cash dividend ($1.10 * (100,000+47,000-4,200)) $     157,080 Dividend payable   $     157,080 Jul-01 Dividend payable   $     157,080 Cash $     157,080 Oct-21 Cash (2,100*$52) $     109,200 Treasury stock (2,100*$47) $        98,700 Additional paid in capital - treasury stock $        10,500

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