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, $$10$ stated value $(500,000$ shares authorized, $320,000$ shares issued$)$ $$3,200,000$

Paid$-$In Capital in Excess of Stated Value$-$Common Stock $600,000$

Retained Earnings $7,260,000$

Treasury Stock $(32,000$ shares, at cost$)480,000$

The following selected transactions occurred during the year:

Jan. $15.$ Paid cash dividends of $$0\mathrm{.}14$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$40,320.$

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

Apr. $13.$ Issued $60,000$ shares of common stock for $$960,000.$

June $14.$ Declared a $5\%$ stock dividend on common stock, to be capitalized at the market price of the stock, which is $$18$ per share.

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

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

Dec. $30.$ Declared a $$0\mathrm{.}17-$per$-$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. $3,200,000$

fill in the blank $2$

fill in the blank $4$

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

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

Jan. $1$ Bal. $600,000$

fill in the blank $7$

fill in the blank $9$

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

Retained Earnings

fill in the blank $12$ Jan. $1$ Bal. $7,260,000$

fill in the blank $14$

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

Treasury Stock

Jan. $1$ Bal. $480,000$

fill in the blank $17$

fill in the blank $19$

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

Paid$-$In Capital from Sale of Treasury Stock

fill in the blank $22$

Stock Dividends Distributable

fill in the blank $24$

fill in the blank $26$

Stock Dividends

fill in the blank $28$

fill in the blank $30$

Cash Dividends

fill in the blank $32$

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 $$0\mathrm{.}14$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$40,320.$

Date Account Debit Credit

Jan. $15$

fill in the blank $36$ fill in the blank $37$

fill in the blank $39$ fill in the blank $40$

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

Date Account Debit Credit

Mar. $15$

fill in the blank $42$ fill in the blank $43$

fill in the blank $45$ fill in the blank $46$

fill in the blank $48$ fill in the blank $49$

Apr. $13.$ Issued $60,000$ shares of common stock for $$960,000$

Date Account Debit Credit

Apr. $13$

fill in the blank $51$ fill in the blank $52$

fill in the blank $54$ fill in the blank $55$

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 $$18$ per share.

Date Account Debit Credit

June $14$

fill in the blank $60$ fill in the blank $61$

fill in the blank $63$ fill in the blank $64$

fill in the blank $66$ fill in the blank $67$

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

Date Account Debit Credit

July $16$

fill in the blank $69$ fill in the blank $70$

fill in the blank $72$ fill in the blank $73$

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

Date Account Debit Credit

Oct. $30$

fill in the blank $75$ fill in the blank $76$

fill in the blank $78$ fill in the blank $79$

Dec. $30.$ Declared a $$0\mathrm{.}17-$per$-$share dividend on common stock.

Date Account Debit Credit

Dec. $30$

fill in the blank $81$ fill in the blank $82$

fill in the blank $84$ fill in the blank $85$

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

Date Account Debit Credit

Dec. $31$

fill in the blank $87$ fill in the blank $88$

fill in the blank $90$ fill in the blank $91$

fill in the blank $93$ fill in the blank $94$

$3.$ Prepare a statement of stockholders$$ equity for the year ended December $31,20$Y$1.$ Assume that net income was $$7,550,000$ for the year ended December $31,20$Y$1.$ 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 $31,20$Y$1$

Common Stock Paid$-$In

Capital in

Excess of

Stated Value Paid$-$In

Capital from Sale of

Treasury Stock Retained

Earnings Treasury

Stock Total

$fill in the blank $96$ $fill in the blank $97$ $fill in the blank $98$ $fill in the blank $99$ $fill in the blank $100$ $fill in the blank $101$

fill in the blank $103$ fill in the blank $104$