Nav-Go Enterprises Inc. produces aeronautical navigation equipment. The stockholders' equity accounts of Nav-Go Enterprises Inc., with balances on January 1, 20Y3, are as follows: Common Stock, $5 stated value (900,000 shares authorized, 620,000 shares issued)... Paid-In Capital in Excess of Stated Value-Common Stock. Retained Earnings Treasury Stock (48,000 shares, at a cost of $6 per share) $3,100,000 1,240,000 4,875,000 288,000 The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of $0.06 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $34,320. Mar. 15. Sold all of the treasury stock for $6.75 per share. Apr. 13. Issued 200,000 shares of common stock for $8 per share. June 14. Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is $7.50 per share. July 16. Issued the certificates for the dividend declared on June 14. Oct. 30. Purchased 50,000 shares of treasury stock for $6 per share. Dec. 30. Declared a $0.08-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. Instructions 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions and post to the eight selected ac- counts. 3. Prepare a retained earnings statement for the year ended December 31, 20Y3. 4. Prepare the Stockholders' Equity section of the December 31, 20Y3, balance sheet using Method 1 of Exhibit 8.
Nav-Go Enterprises Inc. produces aeronautical navigation equipment. The stockholders' equity accounts of Nav-Go Enterprises Inc., with balances on January 1, 20Y3, are as follows: Common Stock, $5 stated value (900,000 shares authorized, 620,000 shares issued)... Paid-In Capital in Excess of Stated Value-Common Stock. Retained Earnings Treasury Stock (48,000 shares, at a cost of $6 per share) $3,100,000 1,240,000 4,875,000 288,000 The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of $0.06 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $34,320. Mar. 15. Sold all of the treasury stock for $6.75 per share. Apr. 13. Issued 200,000 shares of common stock for $8 per share. June 14. Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is $7.50 per share. July 16. Issued the certificates for the dividend declared on June 14. Oct. 30. Purchased 50,000 shares of treasury stock for $6 per share. Dec. 30. Declared a $0.08-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. Instructions 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions and post to the eight selected ac- counts. 3. Prepare a retained earnings statement for the year ended December 31, 20Y3. 4. Prepare the Stockholders' Equity section of the December 31, 20Y3, balance sheet using Method 1 of Exhibit 8.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nav-Go Enterprises Inc. produces aeronautical navigation equipment. The stockholders' equity
accounts of Nav-Go Enterprises Inc., with balances on January 1, 20Y3, are as follows:
Common Stock, $5 stated value (900,000 shares authorized,
620,000 shares issued)...
Paid-In Capital in Excess of Stated Value-Common Stock.
Retained Earnings
Treasury Stock (48,000 shares, at a cost of $6 per share)
$3,100,000
1,240,000
4,875,000
288,000
The following selected transactions occurred during the year:
Jan. 15. Paid cash dividends of $0.06 per share on the common stock. The dividend had
been properly recorded when declared on December 1 of the preceding fiscal
year for $34,320.
Mar. 15. Sold all of the treasury stock for $6.75 per share.
Apr. 13. Issued 200,000 shares of common stock for $8 per share.
June 14. Declared a 3% stock dividend on common stock, to be capitalized at the
market price of the stock, which is $7.50 per share.
July 16. Issued the certificates for the dividend declared on June 14.
Oct. 30. Purchased 50,000 shares of treasury stock for $6 per share.
Dec. 30. Declared a $0.08-per-share dividend on common stock.
31. Closed the two dividends accounts to Retained Earnings.
Instructions
1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed.
Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock;
Stock Dividends Distributable; Stock Dividends; Cash Dividends.
2. Journalize the entries to record the transactions and post to the eight selected ac-
counts.
3. Prepare a retained earnings statement for the year ended December 31, 20Y3.
4. Prepare the Stockholders' Equity section of the December 31, 20Y3, balance sheet
using Method 1 of Exhibit 8.
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