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 (550,000 shares authorized, 380,000 shares issued)$3,800,000Paid-In Capital in Excess of Stated Value-Common Stock700,000Retained Earnings8,630,000Treasury Stock (38,000 shares, at cost)570,000The 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 $51,300.Mar. 15.Sold all of the treasury stock for $18 per share.Apr. 13.Issued 70,000 shares of common stock for $1,260,000.June 14.Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share.July 16.Issued shares of stock for the stock dividend declared on June 14.Oct. 30.Purchased 24,000 shares of treasury stock for $20 per share.Dec. 30.Declared a $0.18-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.3,800,000 Apr. 13 July 16 Dec. 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal.700,000 Apr. 13 June 14 Dec. 31 Bal. Retained EarningsDec. 31 fill in the blank 12Jan. 1 Bal.8,630,000 Dec. 31 Dec. 31 Bal. Treasury StockJan. 1 Bal.570,000Mar. 15 fill in the blank 17Oct. 30 fill in the blank 19 Dec. 31 Bal.fill in the blank 20 Paid-In Capital from Sale of Treasury Stock Mar. 15 fill in the blank 22Stock Dividends DistributableJuly 16 June 14 Stock DividendsJune 14 Dec. 31 Cash DividendsDec. 30 Dec. 31 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 $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $51,300. DateAccountDebitCreditJan. 15Cash Dividends Payable Cash Mar. 15. Sold all of the treasury stock for $18 per share.DateAccountDebitCreditMar. 15Cash Treasury Stock Paid-In Capital from Sale of Treasury Stock Apr. 13. Issued 70,000 shares of common stock for $1,260,000DateAccountDebitCreditApr. 13Cash Common Stock Paid-In Capital in Excess of Stated Value-Common Stock June 14. Declared a 4% on common stock, to be capitalized at the market price of the stock, which is $20 per share. DateAccountDebitCreditJune 14Stock Dividends Stock Dividends Distributable Paid-In Capital in Excess of Stated Value-Common Stock July 16. Issued stock for stock dividend declared on June 14. DateAccountDebitCreditJuly 16Stock Dividends Distributable Common Stock Oct. 30. Purchased 24,000 shares of treasury stock for $20 per share. DateAccountDebitCreditOct. 30Treasury Stock Cash Dec. 30. Declared a $0.18-per-share dividend on common stock. DateAccountDebitCreditDec. 30Cash Dividends Cash Dividends Payable Dec. 31. Closed the two dividends accounts to Retained Earnings. DateAccountDebitCreditDec. 31Retained Earnings Stock Dividends Cash Dividends 3. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y1. Assume that net income was $8,975,000 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’ EquityFor the Year Ended December 31, 20Y1 Common StockPaid-InCapital inExcess ofStated ValuePaid-InCapital from Sale ofTreasury StockRetainedEarningsTreasuryStockTotalBalances, 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” 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 SheetDecember 31, 20Y1Stockholders' Equity Paid-In Capital: Common Stock, $10 Stated Value (550,000 Shares Authorized, 468,000 Shares Issued) Excess of Issue Price Over Stated Value From Sale of Treasury Stock Total Paid-In Capital Retained Earnings Total Treasury Stock (24,000 Shares, at Cost) Total Stockholders' Equity

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Answered: Nav-Go Enterprises Inc. produces…

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 (550,000 shares authorized, 380,000 shares issued)	$3,800,000
Paid-In Capital in Excess of Stated Value-Common Stock	700,000
Retained Earnings	8,630,000
Treasury Stock (38,000 shares, at cost)	570,000

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 $51,300.
Mar. 15.	Sold all of the treasury stock for $18 per share.
Apr. 13.	Issued 70,000 shares of common stock for $1,260,000.
June 14.	Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share.
July 16.	Issued shares of stock for the stock dividend declared on June 14.
Oct. 30.	Purchased 24,000 shares of treasury stock for $20 per share.
Dec. 30.	Declared a $0.18-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.	3,800,000
		Apr. 13
		July 16
		Dec. 31 Bal.

Paid-In Capital in Excess of Stated Value-Common Stock
		Jan. 1 Bal.	700,000
		Apr. 13
		June 14
		Dec. 31 Bal.

Retained Earnings
Dec. 31	fill in the blank 12	Jan. 1 Bal.	8,630,000
		Dec. 31
		Dec. 31 Bal.

Treasury Stock
Jan. 1 Bal.	570,000	Mar. 15	fill in the blank 17
Oct. 30	fill in the blank 19
Dec. 31 Bal.	fill in the blank 20

Paid-In Capital from Sale of Treasury Stock
		Mar. 15	fill in the blank 22

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 the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.

Jan. 15. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $51,300.

Date	Account	Debit	Credit
Jan. 15	Cash Dividends Payable
	Cash

Mar. 15. Sold all of the treasury stock for $18 per share.

Date	Account	Debit	Credit
Mar. 15	Cash
	Treasury Stock
	Paid-In Capital from Sale of Treasury Stock

Apr. 13. Issued 70,000 shares of common stock for $1,260,000

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

June 14. Declared a 4% on common stock, to be capitalized at the market price of the stock, which is $20 per share.

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 dividend declared on June 14.

Date	Account	Debit	Credit
July 16	Stock Dividends Distributable
	Common Stock

Oct. 30. Purchased 24,000 shares of treasury stock for $20 per share.

Date	Account	Debit	Credit
Oct. 30	Treasury Stock
	Cash

Dec. 30. Declared a $0.18-per-share dividend on common stock.

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

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

Date	Account	Debit	Credit
Dec. 31	Retained Earnings
	Stock Dividends
	Cash Dividends

3. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y1. Assume that net income was $8,975,000 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
	Common Stock	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” 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:
Common Stock, $10 Stated Value (550,000 Shares Authorized, 468,000 Shares Issued)
Excess of Issue Price Over Stated Value
From Sale of Treasury Stock
Total Paid-In Capital
Retained Earnings
Total
Treasury Stock (24,000 Shares, at Cost)
Total Stockholders' Equity

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