Week 7: Homework
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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.
10
points
March
1 Issues 46,000 additional shares of $1 par value common stock for $43 per share.
May
10 Purchases 4,100 shares of treasury stock for $46 per share.
June
1 Declares a cash dividend of $1.05 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 2,050 shares of treasury stock purchased on May 10 for $51 per share.
Required:
Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in
the first account field.)
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References
View transaction list
View journal entry worksheet
No
Date
General Journal
Debit
Credit
1
March 01, 2021
Cash
1,978,000
Common Stock
Additional Paid-in Capital
46,000
1,932,000
2
May 10, 2021
Treasury Stock
Cash
188,600
188,600
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