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 (400,000 shares authorized, 280,000 shares issued) $2,800,000 Paid-In Capital in Excess of Stated Value-Common Stock 550,000 Retained Earnings 6,360,000 Treasury Stock (28,000 shares, at cost) 392,000 The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $35,280. Mar. 15. Sold all of the treasury stock for $17 per share. Apr. 13. Issued 55,000 shares of common stock for $880,000. June 14. Declared a 5% 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 18,000 shares of treasury stock for $19 per share. Dec. 30. Declared a $0.17-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. Required: 1. The January 1 balances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T accounts and provide the December 31 balance where appropriate. If required, round to one decimal place. Common Stock Jan. 1 Bal. 2,800,000 fill in the blank 2 fill in the blank 4 Dec. 31 Bal. fill in the blank 5 Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 550,000 fill in the blank 7 fill in the blank 9 Dec. 31 Bal. fill in the blank 10 Retained Earnings fill in the blank 12 Jan. 1 Bal. 6,360,000 fill in the blank 14 Dec. 31 Bal. fill in the blank 15 Treasury Stock Jan. 1 Bal. 392,000 fill in the blank 17 fill in the blank 19 Dec. 31 Bal. fill in the blank 20 Paid-In Capital from Sale of Treasury Stock fill in the blank 22 Stock Dividends Distributable fill in the blank 24 fill in the blank 26 Stock Dividends fill in the blank 28 fill in the blank 30 Cash Dividends fill in the blank 32 fill in the blank 34 2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 15. Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $35,280. Date Account Debit Credit Jan. 15 fill in the blank 36 fill in the blank 37 fill in the blank 39 fill in the blank 40 Mar. 15. Sold all of the treasury stock for $17 per share. Date Account Debit Credit Mar. 15 fill in the blank 42 fill in the blank 43 fill in the blank 45 fill in the blank 46 fill in the blank 48 fill in the blank 49 Apr. 13. Issued 55,000 shares of common stock for $880,000 Date Account Debit Credit Apr. 13 fill in the blank 51 fill in the blank 52 fill in the blank 54 fill in the blank 55 fill in the blank 57 fill in the blank 58 June 14. Declared a 5% on common stock, to be capitalized at the market price of the stock, which is $18 per share. Date Account Debit Credit June 14 fill in the blank 60 fill in the blank 61 fill in the blank 63 fill in the blank 64 fill in the blank 66 fill in the blank 67 July 16. Issued stock for stock dividend declared on June 14. Date Account Debit Credit July 16 fill in the blank 69 fill in the blank 70 fill in the blank 72 fill in the blank 73 Oct. 30. Purchased 18,000 shares of treasury stock for $19 per share. Date Account Debit Credit Oct. 30 fill in the blank 75 fill in the blank 76 fill in the blank 78 fill in the blank 79 Dec. 30. Declared a $0.17-per-share dividend on common stock. Date Account Debit Credit Dec. 30 fill in the blank 81 fill in the blank 82 fill in the blank 84 fill in the blank 85 Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Account Debit Credit Dec. 31 fill in the blank 87 fill in the blank 88 fill in the blank 90 fill in the blank 91 fill in the blank 93 fill in the blank 94 3. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y1. Assume that net income was $6,614,000 for the year ended December 31, 20Y1. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank or enter “0”.

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 (400,000 shares authorized, 280,000 shares issued) $2,800,000 Paid-In Capital in Excess of Stated Value-Common Stock 550,000 Retained Earnings 6,360,000 Treasury Stock (28,000 shares, at cost) 392,000 The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $35,280. Mar. 15. Sold all of the treasury stock for $17 per share. Apr. 13. Issued 55,000 shares of common stock for $880,000. June 14. Declared a 5% 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 18,000 shares of treasury stock for $19 per share. Dec. 30. Declared a $0.17-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. Required: 1. The January 1 balances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T accounts and provide the December 31 balance where appropriate. If required, round to one decimal place. Common Stock Jan. 1 Bal. 2,800,000 fill in the blank 2 fill in the blank 4 Dec. 31 Bal. fill in the blank 5 Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 550,000 fill in the blank 7 fill in the blank 9 Dec. 31 Bal. fill in the blank 10 Retained Earnings fill in the blank 12 Jan. 1 Bal. 6,360,000 fill in the blank 14 Dec. 31 Bal. fill in the blank 15 Treasury Stock Jan. 1 Bal. 392,000 fill in the blank 17 fill in the blank 19 Dec. 31 Bal. fill in the blank 20 Paid-In Capital from Sale of Treasury Stock fill in the blank 22 Stock Dividends Distributable fill in the blank 24 fill in the blank 26 Stock Dividends fill in the blank 28 fill in the blank 30 Cash Dividends fill in the blank 32 fill in the blank 34 2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 15. Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $35,280. Date Account Debit Credit Jan. 15 fill in the blank 36 fill in the blank 37 fill in the blank 39 fill in the blank 40 Mar. 15. Sold all of the treasury stock for $17 per share. Date Account Debit Credit Mar. 15 fill in the blank 42 fill in the blank 43 fill in the blank 45 fill in the blank 46 fill in the blank 48 fill in the blank 49 Apr. 13. Issued 55,000 shares of common stock for $880,000 Date Account Debit Credit Apr. 13 fill in the blank 51 fill in the blank 52 fill in the blank 54 fill in the blank 55 fill in the blank 57 fill in the blank 58 June 14. Declared a 5% on common stock, to be capitalized at the market price of the stock, which is $18 per share. Date Account Debit Credit June 14 fill in the blank 60 fill in the blank 61 fill in the blank 63 fill in the blank 64 fill in the blank 66 fill in the blank 67 July 16. Issued stock for stock dividend declared on June 14. Date Account Debit Credit July 16 fill in the blank 69 fill in the blank 70 fill in the blank 72 fill in the blank 73 Oct. 30. Purchased 18,000 shares of treasury stock for $19 per share. Date Account Debit Credit Oct. 30 fill in the blank 75 fill in the blank 76 fill in the blank 78 fill in the blank 79 Dec. 30. Declared a $0.17-per-share dividend on common stock. Date Account Debit Credit Dec. 30 fill in the blank 81 fill in the blank 82 fill in the blank 84 fill in the blank 85 Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Account Debit Credit Dec. 31 fill in the blank 87 fill in the blank 88 fill in the blank 90 fill in the blank 91 fill in the blank 93 fill in the blank 94 3. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y1. Assume that net income was $6,614,000 for the year ended December 31, 20Y1. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank or enter “0”.

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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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 (400,000 shares authorized, 280,000 shares issued)	$2,800,000
Paid-In Capital in Excess of Stated Value-Common Stock	550,000
Retained Earnings	6,360,000
Treasury Stock (28,000 shares, at cost)	392,000

The following selected transactions occurred during the year:

Jan. 15.	Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $35,280.
Mar. 15.	Sold all of the treasury stock for $17 per share.
Apr. 13.	Issued 55,000 shares of common stock for $880,000.
June 14.	Declared a 5% 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 18,000 shares of treasury stock for $19 per share.
Dec. 30.	Declared a $0.17-per-share dividend on common stock.
31.	Closed the two dividends accounts to Retained Earnings.

Required:

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

Common Stock
		Jan. 1 Bal.	2,800,000
			fill in the blank 2
			fill in the blank 4
		Dec. 31 Bal.	fill in the blank 5

Paid-In Capital in Excess of Stated Value-Common Stock
		Jan. 1 Bal.	550,000
			fill in the blank 7
			fill in the blank 9
		Dec. 31 Bal.	fill in the blank 10


fill in the blank 12	Jan. 1 Bal.	6,360,000
		fill in the blank 14
	Dec. 31 Bal.	fill in the blank 15

Treasury Stock
Jan. 1 Bal.	392,000	fill in the blank 17
	fill in the blank 19
Dec. 31 Bal.	fill in the blank 20

Paid-In Capital from Sale of Treasury Stock
			fill in the blank 22

Stock Dividends Distributable
	fill in the blank 24		fill in the blank 26

Stock Dividends
	fill in the blank 28		fill in the blank 30

Cash Dividends
	fill in the blank 32		fill in the blank 34

2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.

Jan. 15. Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $35,280.

Date	Account	Debit	Credit
Jan. 15		fill in the blank 36	fill in the blank 37
		fill in the blank 39	fill in the blank 40

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

Date	Debit	Credit
Mar. 15	fill in the blank 42	fill in the blank 43
	fill in the blank 45	fill in the blank 46
	fill in the blank 48	fill in the blank 49

Apr. 13. Issued 55,000 shares of common stock for $880,000

Date	Debit	Credit
Apr. 13	fill in the blank 51	fill in the blank 52
	fill in the blank 54	fill in the blank 55
	fill in the blank 57	fill in the blank 58

June 14. Declared a 5% on common stock, to be capitalized at the market price of the stock, which is $18 per share.

Date	Debit	Credit
June 14	fill in the blank 60	fill in the blank 61
	fill in the blank 63	fill in the blank 64
	fill in the blank 66	fill in the blank 67

July 16. Issued stock for stock dividend declared on June 14.

Date	Account	Debit	Credit
July 16		fill in the blank 69	fill in the blank 70
		fill in the blank 72	fill in the blank 73

Oct. 30. Purchased 18,000 shares of treasury stock for $19 per share.

Date	Account	Debit	Credit
Oct. 30		fill in the blank 75	fill in the blank 76
		fill in the blank 78	fill in the blank 79

Dec. 30. Declared a $0.17-per-share dividend on common stock.

Date	Account	Debit	Credit
Dec. 30		fill in the blank 81	fill in the blank 82
		fill in the blank 84	fill in the blank 85

Dec. 31. Closed the two dividends accounts to Retained Earnings.

Date	Debit	Credit
Dec. 31	fill in the blank 87	fill in the blank 88
	fill in the blank 90	fill in the blank 91
	fill in the blank 93	fill in the blank 94

3. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y1. Assume that net income was $6,614,000 for the year ended December 31, 20Y1. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank or enter “0”.

Nav-Go Enterprises Inc.
Statement of Stockholders' Equity
For the Year Ended December 31, 20Y1
Paid-In
Capital in
Paid-In
Excess of Capital from Sale of Retained Treasury
Common Stock Stated Value Treasury Stock
Earnings Stock Total
$
$4

4. Prepare the "Stockholders' Equity" section of the December 31, 20Y1, balance sheet. For those boxes in which
you 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

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