Refer to the information in E109. Power Drive Corporation has the following beginning balances in its stockholders

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Refer to the information in E10€“9. Power Drive Corporation has the following beginning balances in its stockholders€™ equity accounts on January 1, 2015: Common Stock, $200,000; Additional Paid-in Capital, $3,800,000; and Retained Earnings, $1,500,000. Net income for the year ended December 31, 2015, is $800,000.
In E10€“9, Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 200,000 shares of common stock outstanding as of the beginning of 2015. Power Drive has the following transactions affecting stockholders€™ equity in 2015.
March 1 Issues 25,000 additional shares of $1 par value common stock for $18 per share.
May 10 Purchases 6,000 shares of treasury stock for $20 per share.
June 1 Declares a cash dividend of $1.00 per share to all stockholders of record on June 15.
July 1 Pays the cash dividend declared on June 1.
October 21 Reissues 4,000 shares of treasury stock purchased on May 10 for $25 per share.

Required:
Taking into consideration all the entries described in E10€“8, prepare the statement of stockholders€™ equity for Power Drive Corporation for the year ended December 31, 2015, using the formatprovided.
Refer to the information in E10€“9. Power Drive Corporation has
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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