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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 $1,20$Y$1,$ are as follows:

Common Stock, $$10$ stated value $(800,000$ shares authorized, $520,000$ shares issued$)$ $$5,200,000$

Paid$-$In Capital in Excess of Stated Value$-$Common Stock $1,000,000$

Retained Earnings $11,800,000$

Treasury Stock $(52,000$ shares, at cost$)728,000$

The following selected transactions occurred during the year:

Jan. $15.$ Paid cash dividends of $$0\mathrm{.}12$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$56,160.$

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

Apr. $13.$ Issued $100,000$ shares of common stock for $$1,800,000.$

June $14.$ Declared a $5\%$ 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 $33,000$ shares of treasury stock for $$19$ per share.

Dec. $30.$ Declared a $$0\mathrm{.}15-$per$-$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. $5,200,000$

Apr. $13$

fill in the blank $2$

$1,000,000$

July $16$

fill in the blank $4$

$310,000$

Dec. $31$ Bal. fill in the blank $5$

$6,510,000$

Paid$-$In Capital in Excess of Stated Value$-$Common Stock

Jan. $1$ Bal. $1,000,000$

Apr. $13$

fill in the blank $7$

June $14$

fill in the blank $9$

Incorrect

Dec. $31$ Bal. fill in the blank $10$

Retained Earnings

Dec. $31$

fill in the blank $12$

Jan. $1$ Bal. $11,800,000$

Dec. $31$

fill in the blank $14$

$12,272,000$

Dec. $31$ Bal. fill in the blank $15$

Treasury Stock

Jan. $1$ Bal. $728,000$

Mar. $15$

fill in the blank $17$

$728,000$

Oct. $30$

fill in the blank $19$

$627,000$

Dec. $31$ Bal. fill in the blank $20$

$627,000$

Paid$-$In Capital from Sale of Treasury Stock

Mar. $15$

fill in the blank $22$

$156,000$

Stock Dividends Distributable

July $16$

fill in the blank $24$

$310,000$

June $14$

fill in the blank $26$

$310,000$

Stock Dividends

June $14$

fill in the blank $28$

Dec. $31$

fill in the blank $30$

Cash Dividends

Dec. $30$

fill in the blank $32$

Dec. $31$

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 $$0\mathrm{.}12$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$56,160.$

Date Account Debit Credit

Jan. $15$

Cash Dividends Payable

fill in the blank $36$

fill in the blank $37$

Cash

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. $15$

Cash

fill in the blank $42$

fill in the blank $43$

Treasury Stock

fill in the blank $45$

fill in the blank $46$

Paid$-$In Capital from Sale of Treasury Stock

fill in the blank $48$

fill in the blank $49$

Apr. $13.$ Issued $100,000$ shares of common stock for $$1,800,000$

Date Account Debit Credit

Apr. $13$

Cash

fill in the blank $51$

fill in the blank $52$

Common Stock

fill in the blank $54$

fill in the blank $55$

Paid$-$In Capital in Excess of Stated Value$-$Common Stock

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 $$20$ per share.

Date Account Debit Credit

June $14$

Stock Dividends

fill in the blank $60$

fill in the blank $61$

$0$

Stock Dividends Distributable

fill in the blank $63$

$0$

fill in the blank $64$

Paid$-$In Capital in Excess of Stated Value$-$Common Stock

fill in the blank $66$

$0$

fill in the blank $67$

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

Date Account Debit Credit

July $16$

Stock Dividends Distributable

fill in the blank $69$

fill in the blank $70$

$0$

Common Stock

fill in the blank $72$

$0$

fill in the blank $73$

Oct. $30.$ Purchased $33,000$ shares of treasury stock for $$19$ per share.

Date Account Debit Credit

Oct. $30$

Treasury Stock

fill in the blank $75$

fill in the blank $76$

$0$

Cash

fill in the blank $78$

$0$

fill in the blank $79$

Dec. $30.$ Declared a $$0\mathrm{.}15-$per$-$share dividend on common stock.

Date Account Debit Credit

Dec. $30$

Cash Dividends

fill in the blank $81$

fill in the blank $82$

$0$

Cash Dividends Payable

fill in the blank $84$

$0$

fill in the blank $85$

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

Date Account Debit Credit