Entries for Selected Corporate Transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Nav-Go Enterprises' stockholders’ equity accounts,...

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Accounting

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 (650,000 shares authorized,440,000 shares issued) $4,400,000
Paid-In Capital in Excess of Stated Value-Common Stock 850,000
Retained Earnings 9,990,000
Treasury Stock (44,000 shares, at cost) 616,000
The following selected transactions occurred during theyear:
Jan. 15. Paid cash dividends of $0.13 per share on the common stock. Thedividend had been properly recorded when declared on December 1 ofthe preceding fiscal year for $51,480.
Mar. 15. Sold all of the treasury stock for $17 per share.
Apr. 13. Issued 85,000 shares of common stock for $1,530,000.
June 14. Declared a 5% stock dividend on common stock, to be capitalizedat the market price of the stock, which is $20 per share.
July 16. Issued shares of stock for the stock dividend declared on June14.
Oct. 30. Purchased 28,000 shares of treasury stock for $19 pershare.
Dec. 30. Declared a $0.16-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. 4,400,000
Apr. 13
July 16
Dec. 31 Bal.

Paid-In Capital in Excess of Stated Value-CommonStock
Jan. 1 Bal. 850,000
Apr. 13
June 14
Dec. 31 Bal.

Retained Earnings
Dec. 31 Jan. 1 Bal. 9,990,000
Dec. 31
Dec. 31 Bal.

Treasury Stock
Jan. 1 Bal. 616,000 Mar. 15
Oct. 30
Dec. 31 Bal.

Paid-In Capital from Sale of Treasury Stock
Mar. 15

Stock Dividends Distributable
July 16 June 14

Stock Dividends
June 14 Dec. 31

Cash Dividends
Dec. 30 Dec. 31
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 $0.13 per shareon the common stock. The dividend had been properly recorded whendeclared on December 1 of the preceding fiscal year for$51,480.
Date Account Debit Credit
Jan. 15 Cash Dividends Payable
Cash
Mar. 15. Sold all of the treasury stock for $17per share.
Date Account Debit Credit
Mar. 15 Cash
Treasury Stock
Paid-In Capital from Sale of Treasury Stock
Apr. 13. Issued 85,000 shares of common stockfor $1,530,000
Date Account Debit Credit
Apr. 13 Cash
Common Stock
Paid-In Capital in Excess of Stated Value-Common Stock
June 14. Declared a 5% on common stock, to becapitalized at the market price of the stock, which is $20 pershare.
Date Account Debit Credit
June 14 Stock Dividends
Stock Dividends Distributable
Paid-In Capital in Excess of Stated Value-Common Stock
July 16. Issued stock for stock dividenddeclared on June 14.
Date Account Debit Credit
July 16 Stock Dividends Distributable
Common Stock
Oct. 30. Purchased 28,000 shares of treasurystock for $19 per share.
Date Account Debit Credit
Oct. 30 Treasury Stock
Cash
Dec. 30. Declared a $0.16-per-share dividend oncommon stock.
Date Account Debit Credit
Dec. 30 Cash Dividends
Cash Dividends Payable

Dec. 31. Closed the two dividends accounts toRetained Earnings.
Date Account Debit Credit
Dec. 31 Retained Earnings
Stock Dividends
Cash Dividends
3. Prepare a statement of stockholders’ equityfor the year ended December 31, 20Y1. Assume that net income was$10,390,000 for the year ended December 31, 20Y1. For those boxesin which 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
CommonStock Paid-In
Capital in
Excess of
Stated Value Paid-In
Capital from Sale of
Treasury Stock Retained
Earnings Treasury
Stock Total
Balances, January 1 $ $ $ $ $ $
Issued Common Stock
Net Income
Cash Dividends
Stock Dividends
Sale of Treasury Stock
Purchase of Treasury Stock
Balances, December 31 $ $ $ $ $ $
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:
Common Stock, $10 Stated Value (650,000 Shares Authorized,551,250 Shares Issued)
Excess of Issue Price Over Stated Value
From Sale of Treasury Stock
Total Paid-In Capital
Retained Earnings
Total
Treasury Stock (28,000 Shares, at Cost)
Total Stockholders' Equity
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Paid-In Capital from Sale of Treasury Stock
		Mar. 15

Stock Dividends Distributable
July 16		June 14

Stock Dividends
June 14		Dec. 31

Cash Dividends
Dec. 30		Dec. 31

Answer & Explanation Solved by verified expert

4.1 Ratings (743 Votes)

Part 1 Common stock Jan 1 Bal 4400000 Apr 13 850000 July 16 262500 Dec 31 Bal 5515250 Paidin capital in excess of stated value common stock Jan 1 Bal 850000 Apr 13 680000 June 14 262500 Dec 31 Bal 1792500 Retained earnings Dec 31 608720 Jan 1 Bal 9990000 Dec 31 10390000 Dec 31 Bal 19771280 Treasury stock Jan 1 Bal 616000 Mar 15 616000 Oct 30 532000 Dec 31 Bal 532000 Paidin capital from sale of Treasury Stock Mar 15 348000 Stock Dividends Distributable July 16 See Answer

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Date	Account	Debit	Credit
Jan. 15	Cash Dividends Payable
	Cash

Date	Account	Debit	Credit
July 16	Stock Dividends Distributable
	Common Stock

Date	Account	Debit	Credit
Oct. 30	Treasury Stock
	Cash

Date	Account	Debit	Credit
Dec. 30	Cash Dividends
	Cash Dividends Payable

Common Stock, $10 stated value (650,000 shares authorized,440,000 shares issued)	$4,400,000
Paid-In Capital in Excess of Stated Value-Common Stock	850,000
Retained Earnings	9,990,000
Treasury Stock (44,000 shares, at cost)	616,000

Jan. 15.	Paid cash dividends of $0.13 per share on the common stock. Thedividend had been properly recorded when declared on December 1 ofthe preceding fiscal year for $51,480.
Mar. 15.	Sold all of the treasury stock for $17 per share.
Apr. 13.	Issued 85,000 shares of common stock for $1,530,000.
June 14.	Declared a 5% stock dividend on common stock, to be capitalizedat the market price of the stock, which is $20 per share.
July 16.	Issued shares of stock for the stock dividend declared on June14.
Oct. 30.	Purchased 28,000 shares of treasury stock for $19 pershare.
Dec. 30.	Declared a $0.16-per-share dividend on common stock.
31.	Closed the two dividends accounts to Retained Earnings.

Date	Account	Debit	Credit
Apr. 13	Cash
	Common Stock
	Paid-In Capital in Excess of Stated Value-Common Stock

Nav-Go Enterprises Inc. Statement of Stockholders’ Equity For the Year Ended December 31, 20Y1
	CommonStock	Paid-In Capital in Excess of Stated Value	Paid-In Capital from Sale of Treasury Stock	Retained Earnings	Treasury Stock	Total
Balances, January 1	$	$	$	$	$	$
Issued Common Stock
Net Income
Cash Dividends
Stock Dividends
Sale of Treasury Stock
Purchase of Treasury Stock
Balances, December 31	$	$	$	$	$	$

Nav-Go Enterprises Inc. Balance Sheet December 31, 20Y1
Stockholders' Equity
Paid-In Capital:
Common Stock, $10 Stated Value (650,000 Shares Authorized,551,250 Shares Issued)
Excess of Issue Price Over Stated Value
From Sale of Treasury Stock
Total Paid-In Capital
Retained Earnings
Total
Treasury Stock (28,000 Shares, at Cost)
Total Stockholders' Equity