Entries for Selected Corporate Transactions

Nav$-$Go Enterprises Inc. produces aeronautical navigation equipment. The stockholders' equity accounts of Nav$-$Go Enterprises Inc., with balances on January $1,20$Y$3,$ 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 a cost of $$6$ per share$)288,000$

The following selected transactions occurred during the year:

Jan. $15.$ Paid cash dividends of $$0\mathrm{.}06$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$34,320.$

Mar. $15.$ Sold all of the treasury stock for $$6\mathrm{.}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\mathrm{.}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\mathrm{.}08-$per$-$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.

Common Stock

Jan. $1$ Bal. $3,100,000$

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. $1,240,000$

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. $4,875,000$

fill in the blank $14$

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

Treasury Stock

Jan. $1$ Bal. $288,000$

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. If an amount box does not require an entry, leave it blank.

Jan. $15.$ Paid cash dividends of $$0\mathrm{.}06$ per share on the common stock. The dividend had been properly recorded when declared on December $1$ of the preceding fiscal year for $$34,320.$

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 $$6\mathrm{.}75$ 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 $200,000$ shares of common stock for $$8$ per share.

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 $3\%$ stock dividend on common stock, to be capitalized at the market price of the stock, which is $$7\mathrm{.}50$ 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 the certificates for the 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 $50,000$ shares of treasury stock for $$6$ 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{.}08-$per$-$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 retained earnings statement for the year ended December $31,20$Y$3.$ Assume that Nav$-$Go Enterprises had net income for the year ended December $31,20$Y$3,$ of $$775,000.$

Nav$-$Go Enterprises Inc.

Retained Earnings Statement

For the Year Ended December $31,20$Y$3$

$fill in the blank $96$

$fill in the blank $98$

Dividends:

fill in the blank $100$

fill in the blank $102$

fill in the blank $104$

$fill in the blank $106$

$4.$ Prepare the Stockholders' Equity section of the December $31,20$Y$3,$ balance sheet.

Nav$-$Go Enterprises Inc.

Stockholders' Equity

As of December $31,20$Y$3$

Paid$-$In$-$Capital:

$fill in the blank $108$

fill in the blank $110$

$fill in the blank $112$

fill in th