on January 1, 20Y3, are as follows: Common Stock, $5 stated value (900,000 shares authorized, 620,000 shares issued) $3,100,000 Paid-In Capital in Excess of Stated Value—Common Stock
Nav-Go Enterprises Inc. produces aeronautical navigation equipment. The
| Common Stock, $5 stated value (900,000 shares authorized, 620,000 shares issued) | $3,100,000 |
| Paid-In Capital in Excess of Stated Value—Common Stock | 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. |
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.
2.
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.
Dec. 31. Closed the two dividends accounts to Retained Earnings.
3. Prepare a retained earnings statement for the year ended December 31, 20Y3. Assume that Nav-Go Enterprises had a net income for the year ended December 31, 20Y3, of $775,000.
4. Prepare the Stockholders' Equity section of the December 31, 20Y3,
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