Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power...
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Accounting
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 Drive has the following transactions affecting stockholders' equity in 2021.
March
1
Issues 50,000 additional shares of $1 par value common stock for $47 per share.
May
10
Purchases 4,500 shares of treasury stock for $50 per share.
June
1
Declares a cash dividend of $1.25 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
Resells 2,250 shares of treasury stock purchased on May 10 for $55 per share.
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