Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 110,000 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 63,000 additional shares of $1 par value common stock for $70 per share.
- May 10 Repurchases 6,500 shares of treasury stock for $89 per share.
- June 1 Declares a cash dividend of $2.50 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 3,500 shares of treasury stock purchased on May 10 for $100 per share.
Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2012: Common Stock, $110,000; Paid-in Capital, $4,610,000; and Retained Earnings, $2,240,000. Net income for the year ended December 31, 2012, is $540,000.
Required:
Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2012.