Power drive corporation designs and produces

Exercise 10-11 Prepare a statement of stockholders' equity [LO7]

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.

March

1

Issues 55,000 additional shares of $1 par value common stock for $52 per share.

May

10

Repurchases 5,000 shares of treasury stock for $55 per share.

June

1

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.)

July

1

Pays the cash dividend declared on June 1.

October

21

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.)

POWER DRIVE CORPORATION Statement of Stockholders' Equity For the year ended December 31, 2012

Common Stock

Additional Paid-in Capital

Retained Earnings

Treasury Stock

Total Stockholders' Equity

Balance, January 1

$ 100,000

$ 4,500,000

$ 2,000,000

$ 0

$ 6,600,000

Issued common stock

Repurchased treasury stock

Cash dividends

Sold treasury stock

Net income

Balance, December 31

$

$

$

$

$

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Exercise 10-9 Record common stock, treasury stock, and cash dividends [LO2, 4, 5]

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.

March

1

Issues 55,000 additional shares of $1 par value common stock for $52 per share.

May

10

Repurchases 5,000 shares of treasury stock for $55 per share.

June

1

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.)

July

1

Pays the cash dividend declared on June 1.

October

21

Reissues 2,500 shares of treasury stock purchased on May 10 for $60 per share.

Required:

Record each of these transactions. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

Mar. 1

May 10

June 1

July 1

Oct. 21

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Worksheet

Difficulty: Medium

Learning Objective: 10-04 Account for treasury stock.

Exercise 10-9 Record common stock, treasury stock, and cash dividends [LO2, 4, 5]

Learning Objective: 10-02 Record the issuance of common stock.

Learning Objective: 10-05 Describe retained earnings and record cash dividends.

Exercise 10-8 Record cash dividends [LO5]

On March 15, American Eagle declares a quarterly cash dividend of $0.075 per share payable on April 13 to all stockholders of record on March 30.

Required:

Record American Eagle's declaration and payment of cash dividends for its 220 million shares. (Enter your answers in dollars, not in millions. Leave no cells blank. If no entry is required, select "No journal entry required" in the account field and enter zero (0) in the amount field. Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

March 15

March 30

April 13

Exercise 10-5 Record common stock, preferred stock, and dividend transactions [LO2, 3, 5]

Italian Stallion has the following transactions during the year related to stockholders’ equity.

February

1

Issues 5,000 shares of no-par common stock for $15 per share.

May

15

Issues 500 shares of $10 par value preferred stock for $12 per share.

October

1

Declares a cash dividend of $0.75 per share to all stockholders of record (both common and preferred) on October 15.

October

15

Date of record.

October

31

Pays the cash dividend declared on October 1.

Required:

Record each of these transactions. (Leave no cells blank. If no entry is required, select "No journal entry required" in the account field and enter zero (0) in the amount field. Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

Feb. 1

May 15

Oct. 1

Oct. 15

Oct. 31

Clothing Frontiers began operations on January 1, 2012, and engages in the following transactions during the year related to stockholders’ equity.

January

1

Issues 600 shares of common stock for $40 per share.

April

1

Issues 100 additional shares of common stock for $44 per share.

references

Section Break

Difficulty: Hard

Exercise 10-3 Record the issuance of common stock [LO2]

Learning Objective: 10-02 Record the issuance of common stock.

1.

value: 1.00 points

Exercise 10-3 Part 1

Required:

1.

Record the transactions, assuming Clothing Frontiers has no-par common stock. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

Jan. 1

Apr. 1

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Worksheet

Difficulty: Hard

Exercise 10-3 Part 1

Learning Objective: 10-02 Record the issuance of common stock.

2.

value: 1.00 points

Exercise 10-3 Part 2

2.

Record the transactions, assuming Clothing Frontiers has $1 par value common stock. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

Jan. 1

Apr. 1

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Worksheet

Difficulty: Hard

Exercise 10-3 Part 2

Learning Objective: 10-02 Record the issuance of common stock.

3.

value: 1.00 points

Exercise 10-3 Part 3

3.

Record the transactions, assuming Clothing Frontiers’ common stock has a $1 stated value, rather than a $1 par value. (Omit the "$" sign in your response.)

Date

General Journal

Debit

Credit

Jan. 1

Apr. 1