Entries for Selected Corporate Transactions

Nav-Go Enterprises Inc. produces aeronautical navigationequipment. Nav-Go Enterprises' stockholders’ equity accounts, withbalances on January 1, 20Y1, are as follows:

Common Stock, $10 stated value (350,000 shares authorized,240,000 shares issued)	$2,400,000
Paid-In Capital in Excess of Stated Value-Common Stock	450,000
Retained Earnings	5,450,000
Treasury Stock (24,000 shares, at cost)	336,000

The following selected transactions occurred during theyear:

Jan. 15.	Paid cash dividends of $0.12 per share on the common stock. Thedividend had been properly recorded when declared on December 1 ofthe preceding fiscal year for $25,920.
Mar. 15.	Sold all of the treasury stock for $17 per share.
Apr. 13.	Issued 45,000 shares of common stock for $720,000.
June 14.	Declared a 4% stock dividend on common stock, to be capitalizedat the market price of the stock, which is $18 per share.
July 16.	Issued shares of stock for the stock dividend declared on June14.
Oct. 30.	Purchased 15,000 shares of treasury stock for $19 pershare.
Dec. 30.	Declared a $0.15-per-share dividend on common stock.
31.	Closed the two dividends accounts to Retained Earnings.

Required:

1. The January 1 balances have been entered inT accounts for the stockholders' equity accounts. Record the abovetransactions in the T accounts and provide the December 31 balancewhere appropriate. If required, round to one decimal place.

Common Stock
		Jan. 1 Bal.	2,400,000
		Apr. 13
		July 16
		Dec. 31 Bal.

Paid-In Capital in Excess of Stated Value-CommonStock
		Jan. 1 Bal.	450,000
		Apr. 13
		June 14
		Dec. 31 Bal.

Retained Earnings
Dec. 31		Jan. 1 Bal.	5,450,000
		Dec. 31
		Dec. 31 Bal.

Treasury Stock
Jan. 1 Bal.	336,000
Dec. 31 Bal.

Paid-In Capital from Sale of Treasury Stock

Stock Dividends Distributable

Stock Dividends

Cash Dividends

2. Journalize the entries to record thetransactions. For a compound transaction, if an amount box does notrequire an entry, leave it blank.

Jan. 15. Paid cash dividends of $0.12 per shareon the common stock. The dividend had been properly recorded whendeclared on December 1 of the preceding fiscal year for$25,920.

Date	Account	Debit	Credit
Jan. 15

Mar. 15. Sold all of the treasury stock for $17per share.

Date	Account	Debit	Credit
Mar. 15

Apr. 13. Issued 45,000 shares of common stockfor $720,000

Date	Account	Debit	Credit
Apr. 13

June 14. Declared a 4% on common stock, to becapitalized at the market price of the stock, which is $18 pershare.

Date	Account	Debit	Credit
June 14

July 16. Issued stock for stock dividenddeclared on June 14.

Date	Account	Debit	Credit
July 16

Oct. 30. Purchased 15,000 shares of treasurystock for $19 per share.

Date	Account	Debit	Credit
Oct. 30

Dec. 30. Declared a $0.15-per-share dividend oncommon stock.

Date	Account	Debit	Credit
Dec. 30

Dec. 31. Closed the two dividends accounts toRetained Earnings.

Date	Account	Debit	Credit
Dec. 31

3. Prepare a statement of stockholders’ equityfor the year ended December 31, 20Y1. Assume that net income was$5,668,000 for the year ended December 31, 20Y1. For those boxes inwhich you must enter subtracted or negative numbers use a minussign. If an amount box does not require an entry, leave it blank orenter “0”.

Nav-Go Enterprises Inc. Statement of Stockholders’ Equity For the Year Ended December 31, 20Y1
	Common Stock	Paid-In Capital in Excess of Stated Value	Paid-In Capital from Sale of Treasury Stock	Retained Earnings	Treasury Stock	Total
	$	$	$	$	$	$
	$	$	$	$	$	$

4. Prepare the “Stockholders’ Equity” sectionof the December 31, 20Y1, balance sheet. For those boxes in whichyou must enter subtracted or negative numbers use a minus sign.

Nav-Go Enterprises Inc. Balance Sheet December 31, 20Y1
Stockholders' Equity
Paid-In Capital:
Total Paid-In Capital
Total
Total Stockholders' Equity