Entries for Selected Corporate TransactionsNav-Go Enterprises Inc. produces aeronautical navigation equipment. Nav-Go Enterprises' stockholders’ equity accounts, with balances on January 1, 20Y1, are as follows:Common Stock, $10 stated value (350,000 shares authorized, 240,000 shares issued)$2,400,000Paid-In Capital in Excess of Stated Value-Common Stock450,000Retained Earnings5,450,000Treasury Stock (24,000 shares, at cost)336,000The following selected transactions occurred during the year:Jan. 15.Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $32,400.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 capitalized at the market price of the stock, which is $18 per share.July 16.Issued shares of stock for the stock dividend declared on June 14.Oct. 30.Purchased 15,000 shares of treasury stock for $19 per share.Dec. 30.Declared a $0.18-per-share dividend on common stock.31.Closed the two dividends accounts to Retained Earnings.Required: **Transcription for Educational Website:**---### Prepare a Statement of Stockholders' Equity1. **Instructions:** Prepare a statement of stockholders' equity for the year ended December 31, 20Y1. Assume that net income was $5,668,000 for the year ended December 31, 20Y1. Use a minus sign to enter subtracted or negative numbers. If an amount box does not require an entry, leave it blank or enter "0".2. **Nav-Go Enterprises Inc.** - **Statement of Stockholders’ Equity** - **For the Year Ended December 31, 20Y1** | | Paid-In Capital in Excess of Stated Value | Paid-In Capital from Sale of Treasury Stock | Retained Earnings | Treasury Stock | Total | |----------------------|--------------------------------------------|---------------------------------------------|-------------------|----------------|---------| | **Common Stock** | $___________ | | | | | | **Balance** | | | | | $_______| | **Net Income** | | | $5,668,000 | | | | **Total** | $___________ | $___________ | $_________ | $___________ | $_______|---### Prepare the Stockholders' Equity Section of the Balance Sheet3. **Instructions:** For the Stockholders' Equity section of the December 31, 20Y1, balance sheet, use a minus sign to enter subtracted or negative numbers.4. **Nav-Go Enterprises Inc.** - **Balance Sheet** - **December 31, 20Y1** | | | |----------------------|-----------------------------------------------| | **Stockholders’ Equity** | | | **Paid-In Capital:** | | | | Common Stock: $___________ | | | Paid-In Capital in Excess of Stated Value: $____ | | | Paid-In Capital from Sale of Treasury Stock: $__ | | **Total Paid-In Capital** | $___________ | | | **Retained Earnings**: $_______ | | | **Total**: $_______ | | **Total Stockholders' Equity** | $___________ |### Diagram

Stockholder's Equity -Stockholder's Equity includes the amount contributed by shareholders issued in…

Answered: Entries for Selected Corporate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entries for Selected Corporate Transactions

Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Nav-Go Enterprises' stockholders’ equity accounts, with balances 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 the year:

Jan. 15.	Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $32,400.
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 capitalized at the market price of the stock, which is $18 per share.
July 16.	Issued shares of stock for the stock dividend declared on June 14.
Oct. 30.	Purchased 15,000 shares of treasury stock for $19 per share.
Dec. 30.	Declared a $0.18-per-share dividend on common stock.
31.	Closed the two dividends accounts to Retained Earnings.

Required:

**Transcription for Educational Website:**

---

### Prepare a Statement of Stockholders' Equity

1. **Instructions:** Prepare a statement of stockholders' equity for the year ended December 31, 20Y1. Assume that net income was $5,668,000 for the year ended December 31, 20Y1. Use a minus sign to enter subtracted or negative numbers. If an amount box does not require an entry, leave it blank or enter "0".

2. **Nav-Go Enterprises Inc.**
- **Statement of Stockholders’ Equity**
- **For the Year Ended December 31, 20Y1**

| | Paid-In Capital in Excess of Stated Value | Paid-In Capital from Sale of Treasury Stock | Retained Earnings | Treasury Stock | Total |
|----------------------|--------------------------------------------|---------------------------------------------|-------------------|----------------|---------|
| **Common Stock** | $___________ | | | | |
| **Balance** | | | | | $_______|
| **Net Income** | | | $5,668,000 | | |
| **Total** | $___________ | $___________ | $_________ | $___________ | $_______|

---

### Prepare the Stockholders' Equity Section of the Balance Sheet

3. **Instructions:** For the Stockholders' Equity section of the December 31, 20Y1, balance sheet, use a minus sign to enter subtracted or negative numbers.

4. **Nav-Go Enterprises Inc.**
- **Balance Sheet**
- **December 31, 20Y1**

| | |
|----------------------|-----------------------------------------------|
| **Stockholders’ Equity** | |
| **Paid-In Capital:** | |
| | Common Stock: $___________ |
| | Paid-In Capital in Excess of Stated Value: $____ |
| | Paid-In Capital from Sale of Treasury Stock: $__ |
| **Total Paid-In Capital** | $___________ |
| | **Retained Earnings**: $_______ |
| | **Total**: $_______ |
| **Total Stockholders' Equity** | $___________ |

### Diagram

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