60.1K

Verified Solution

Link Copied!

Exercise 10-12A Prepare a statement of stockholders' equity (LO10-7) 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 2021 Power Dive has the following vonsoctions affecting stockhoiders' equity in 2021 . Harch 1 Tsuues 65,000 additional shares of $1 par valoe conon stock for $62 per thare. Way 10 Purchases 6 , ese shares of treasury stock for 565 per share, June 1. Declares a cash dividend of $2.ee per share to all stockholeers of record on June 15 . (Hint: Dividends are not paid on tressury istock, July I Pays the cash dividend declared on June 2. October 21 Resells 3, 000 shares of treasury stock purchased on May 10 for $70 per share. Power Drive Corporation has the following beginning balances in its stockhoiders' equity accounts on January 1, 2021 Common Stock, $100,000, Additional Paid in Capital, $5,500,000, and Retained Earning5, $3,000,000 Net income for the year ended December 31,2021 , is $700000 Required: Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2021 (Amounts to be deducted should be indicated bu a minus sion.1 Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Answer & Explanation Solved by verified expert

See Answer