I needhelp with this question in order to undertsand this subject Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of commonstock outstanding as of the beginning of 2021. Power Drive has the following transactions affecting stockholders' equity in 2021.1 Issues 56,000 additional shares of $1 par value common stock for $53 per share.10 Purchases 5,100 shares of treasury stock for $56 per share.1 Declares a cash dividend of $1.55 per share to all stockholders of record on June 15. (Hint: Dividends arenot paid on treasury stock.)1 Pays the cash dividend declared on June 1.MarchМayJuneJulyOctober 21 Resells 2,550 shares of treasury stock purchased on May 10 for $61 per share.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, $4,600,000; and Retained Earnings, $2,100,000. Net income for the year ended December 31,2021, is $610,000.Required:Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2021. (Amounts to bededucted should be indicated by a minus sign.)POWER DRIVE CORPORATIONStatement of Stockholders' EquityFor the Year Ended December 31, 2021TotalStockholders'Equity6,800,000AdditionalPaid-in CapitalRetainedEarningsCommon StockTreasury StockBalance, January 1$100,0002$4,600,0002$2,100,000 $O $Issue common stockPurchase treasury stockDeclare dividendsResell treasury stockNet incomeBalance, December 31$100,0004,600,0002,100,000O $6,800,000

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Business

Accounting

Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 84PSA: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...

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