Refer to the information in E10–9. Power Drive Corporation has the following beginning balances in its stockholders’ equity accounts on January 1, 2021: Common Stock, $100,000; Additional Paid-in Capital, $5,500,000; and Retained Earnings, $3,000,000. Net income for the year ended December 31, 2021, is $700,000.

Required:

Taking into consideration all the transactions recorded in E10–9, prepare the statement of stockholders’ equity for Power Drive Corporation for the year ended December 31, 2021, using the format provided.

Transcribed Image Text:

POWER DRIVE CORPORATION Statement of Stockholders' Equity For the year ended December 31, 2021 Additional Total Treasury Stockholders' Equity Common Paid-In Retained Stock Capital Earnings Stock Balance, January 1 $100,000 $5,500,000 $3,000,000 $ -0- $8,600,000 Issue common stock Purchase treasury stock Declare dividends Resell treasury stock Net income Balance, December 31