statement of stockholders’ equity

Exercise 10-11 Prepare a statement of stockholders’ equity 

 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 2012. Power Drive has the following transactions affecting stockholders’ equity in 2012. March1   Issues 55,000 additional shares of $1 par value common stock for $52 per share.May10   Repurchases 5,000 shares of treasury stock for $55 per share.June1   Declares a cash dividend of $1.50 per share to all stockholders of record on June 15.  (Hint:  Dividends are not paid on treasury stock.)July1   Pays the cash dividend declared on June 1.October21   Reissues 2,500 shares of treasury stock purchased on May 10 for $60 per share. Power Drive Corporation has the following beginning balances in its stockholders’ equity accounts on January 1, 2012: common stock, $100,000; paid-in capital, $4,500,000; and retained earnings, $2,000,000. Net income for the year ended December 31, 2012, is $600,000. 

Required:

Prepare the statement of stockholders’ equity for Power Drive Corporation for the year ended December 31, 2012. (Amounts to be deducted should be indicated with a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)

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