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 (650,000 shares authorized, 440,000 shares issued)	$4,400,000
Paid-In Capital in Excess of Stated Value-Common Stock	850,000
Retained Earnings	9,990,000
Treasury Stock (44,000 shares, at cost)	616,000

The following selected transactions occurred during the year:

Jan. 15.	Paid cash dividends of $0.13 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $51,480.
Mar. 15.	Sold all of the treasury stock for $17 per share.
Apr. 13.	Issued 85,000 shares of common stock for $1,530,000.
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 28,000 shares of treasury stock for $19 per share.
Dec. 30.	Declared a $0.16-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.	4,400,000
		Apr. 13
		July 16
		Dec. 31 Bal.

Paid-In Capital in Excess of Stated Value-Common Stock
		Jan. 1 Bal.	850,000
		Apr. 13
		June 14
		Dec. 31 Bal.

Retained Earnings
Dec. 31		Jan. 1 Bal.	9,990,000
		Dec. 31
		Dec. 31 Bal.

Treasury Stock
Jan. 1 Bal.	616,000	Mar. 15
Oct. 30
Dec. 31 Bal.

Paid-In Capital from Sale of Treasury Stock
		Mar. 15

Stock Dividends Distributable
July 16		June 14

Stock Dividends
June 14		Dec. 31

Cash Dividends
Dec. 30		Dec. 31

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 $0.13 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $51,480.

Date	Account	Debit	Credit
Jan. 15	Cash Dividends Payable
	Cash

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

Date	Account	Debit	Credit
Mar. 15	Cash
	Treasury Stock
	Paid-In Capital from Sale of Treasury Stock

Apr. 13. Issued 85,000 shares of common stock for $1,530,000

Date	Account	Debit	Credit
Apr. 13	Cash
	Common Stock
	Paid-In Capital in Excess of Stated Value-Common Stock

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

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

Date	Account	Debit	Credit
July 16	Stock Dividends Distributable
	Common Stock

Oct. 30. Purchased 28,000 shares of treasury stock for $19 per share.

Date	Account	Debit	Credit
Oct. 30	Treasury Stock
	Cash

Dec. 30. Declared a $0.16-per-share dividend on common stock.

Date	Account	Debit	Credit
Dec. 30	Cash Dividends
	Cash Dividends Payable

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

Date	Account	Debit	Credit
Dec. 31	Retained Earnings
	Stock Dividends
	Cash Dividends

3. Prepare a statement of stockholders equity for the year ended December 31, 20Y1. Assume that net income was $10,390,000 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 Stock	Paid-In Capital in Excess of Stated Value	Paid-In Capital from Sale of Treasury Stock	Retained Earnings	Treasury Stock	Total
Balances, January 1	$	$	$	$	$	$
Issued Common Stock
Net Income
Cash Dividends
Stock Dividends
Sale of Treasury Stock
Purchase of Treasury Stock
Balances, December 31	$	$	$	$	$	$

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:
Common Stock, $10 Stated Value (650,000 Shares Authorized, 551,250 Shares Issued)
Excess of Issue Price Over Stated Value
From Sale of Treasury Stock
Total Paid-In Capital
Retained Earnings
Total
Treasury Stock (28,000 Shares, at Cost)
Total Stockholders' Equity

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