Entries for Selected Corporate Transactions

Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Nav-Go Enterprises' stockholders equity accounts, with balances on January 1, 20Y1, are as follows:

Common Stock, $10 stated value (900,000 shares authorized, 600,000 shares issued)$6,000,000

Paid-In Capital in Excess of Stated Value-Common Stock1,150,000

Retained Earnings13,620,000

Treasury Stock (60,000 shares, at cost)900,000

The following selected transactions occurred during the year:

Jan. 15.Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $75,600.

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

Apr. 13.Issued 115,000 shares of common stock for $1,840,000.

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 38,000 shares of treasury stock for $20 per share.

Dec. 30.Declared a $0.17-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.6,000,000

Dec. 31 Bal.

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

Jan. 1 Bal.1,150,000

Dec. 31 Bal.

Retained Earnings

Jan. 1 Bal.13,620,000

Dec. 31 Bal.

Treasury Stock

Jan. 1 Bal.900,000

Dec. 31 Bal.

Paid-In Capital from Sale of Treasury Stock

Stock Dividends Distributable

Stock Dividends

Cash Dividends

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 $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $75,600.

DateAccountDebitCredit

Jan. 15

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

DateAccountDebitCredit

Mar. 15

Apr. 13. Issued 115,000 shares of common stock for $1,840,000

DateAccountDebitCredit

Apr. 13

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

DateAccountDebitCredit

June 14

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

DateAccountDebitCredit

July 16

Oct. 30. Purchased 38,000 shares of treasury stock for $20 per share.

DateAccountDebitCredit

Oct. 30

Dec. 30. Declared a $0.17-per-share dividend on common stock.

DateAccountDebitCredit

Dec. 30

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

DateAccountDebitCredit

Dec. 31

3. Prepare a statement of stockholders equity for the year ended December 31, 20Y1. Assume that net income was $14,165,000 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, 20Y1

Common StockPaid-In Capital in Excess of Stated ValuePaid-In Capital from Sale of Treasury StockRetained EarningsTreasury StockTotal

$$$$$$

$$$$$$

4. Prepare the Stockholders Equity section of the December 31, 20Y1, 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, 20Y1

Stockholders' Equity

Paid-In Capital:

Total Paid-In Capital

Total

Total Stockholders' Equity