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 2015. Power Drive has the following transactions affecting stockholders' equity in 2015: March 1. Issues 65,000 additional shares of $1 par value common stock for $62 per share.
May 10. Repurchases 6,000 shares of treasury stock for $65 per share
June 1. Declares a cash dividend of $2.00 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 3,000 shares of treasury stock purchased on May 10 for $70 per share
Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2015: Common Stock, $100,000; Additional Paid-in Capital, $5,500,000; and Retained Earnings $3,000,000. Net income for the year ended December 31, 2015, is $700,000
Required:
Prepare the statement of stockholders equity for Power Drive Corporation for the year ended December 31, 2015.