Question

1 Issues 56,000 additional shares of $1 par value common stock for $53 per share. May 10 Purchases 5,100 shares of treasury stock for $56 per share. June 1 Declares a cash dividend of $1.55 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 2,550 shares of treasury stock purchased on May 10 for $61 per share. repare the stockholders’ equity section of the balance sheet for Power Drive Corporation as of December 31.

Answer 1

Answer: $2,476,105

Step-by-step explanation:

Stockholders' equity is the amount of assets that remain in a business after all the liabilities have been settled. Stockholders equity is calculated as the capital that is given to a business by its shareholders, plus the donated capital and earnings that are generated by the operation of the business, minus any dividends issued.

The calculation is attached below.