Answered step by step
Verified Expert Solution
Question
1 Approved Answer
answer this question with all its parts Entries for Selected Corporate Transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Nav-Go Enterprises' stockholders' equity accounts, with
answer this question with all its parts
Entries for Selected Corporate Transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Nav-Go Enterprises' stockholders' equity accounts, with balances on January 1, 2011, 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 1,240,000 Retained Earnings 4,875,000 Treasury Stock (48,000 shares, at cost) 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 stock for stock dividend declared on June 14. Oct. 30. Purchased 50,000 shares of treasury stock for $6 per share. Dec. 30. Declared an $0.08-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. Required: 1. The January 1 balances in T accounts for the stockholders' equity accounts have been listed below. T accounts for the following accounts have also been created: Pald-In Capital from Sale of Treasury Stock: Stock Dividends Distributable; Stock Dividends; Cash Dividends. Check My Work 4 more Check My Work uses remaining Previous 61,500 June 14 Dec. 31 Bal. 1,901,500 Dec. 31 Retained Earnings 248,068 Jan. 1 Bal. Dec. 31 Dec. 31 Bal. 4,875,000 75,000 5,401,932 Treasury Stock 288,000 Mar. 15 300,000 Jan. 1 Bal. Oct. 30 288,000 Dec. 31 Bal. 300,000 Pald-In Capital from Sale of Treasury Stock Mar. 15 36,000 Oct. 30 Dec. 31 Bal. 300,000 300,000 Pald-In Capital from Sale of Treasury Stock Mar. 15 36,000 Stock Dividends Distributable 184,500 x Oct. 30 X June 14 X 184,500 x Stock Dividends 63,568 x Dec. 31 V Oct. 30 X 63,568 X Cash Dividends 2. Journalize the entries to record the transactions, and post to the eight selected accounts. If an amou 2. Journalize the entries to record the transactions, and post to the eight selected accounts. If an amount box doe not require an entry, leave it blank. 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. Debit Credit Date Jan. 15 Account Cash Dividends Payable 34,320 Cash 34,320 Debit Credit Mar. 15. Sold all of the treasury stock for $6.75 per share. Date Account Mar. 15 Cash Treasury Stock Pald-In Capital from Sale of Treasury Stock 324,000 288,000 36,000 Apr. 13. Issued 200,000 shares of common stock for $8 per share. Date Account Credi Debit 1,600,000 Pald-In Capital In Excess of stated Value-Common Stock July 16. Issued stock for stock dividend declared on June 14. Date Account Credi Debit 123,000 July 16 Stock Dividends X Common Stock 123,000 Oct. 30. Purchased 50,000 shares of treasury stock for $6 per share. Account Debit Cred Date Oct. 30 Treasury Stock 300,000 Cash 300,00 Dec. 30. Declared an $0.08-per-share dividend on common stock. Date Dec. 30 Account cash Dividends Payable X Debit 63,568 V 3. Prepare a statement of stockholders' equity for the year ended December 31, 2011. Assume that net income was $775,000 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, 2011 Pald-In Capital In Excess of Stated Value Pald-In Capital from Sale of Treasury Stock Common Stock Retained Earnings Treasury Stock Total Nav-Go Enterprises Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20Y1 Pald-In Capital Pald-In from Sale Capital in of Common Excess of Treasury Retained Stock Stated Value Stock - Earnings Treasury Stock Total 4. Prepare the "Stockholders' Equity" section of the December 31, 2011, 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, 2011 Stockholders' Equity Paid-In Capital: Total Paid-In Capital Total Total Stockholders' Equity Previc Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started