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 (700,000 shares authorized, 480,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (48,000 shares, at cost) $4,800,000 900,000 10,900,000 720,000 The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $64,800. Mar. 15. Sold all of the treasury stock for $10 per share. Apr. 13. Issued 90,000 shares of common stock for $10 per share. 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 stock for the stock dividend declared on June 14. Oct. 30. Purchased 30,000 shares of treasury stock for $20 per share. Dec. 30. Declared a $0.18-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings Required: 1. The January 1 balances in T accounts for the stockholders' equity accounts have been listed below. T accounts for the following accounts have also been created: Paid- In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. If required, round to one decimal place. Dec. 31 Common Stock Jan. 1 Bal. Apr. 13 July 16 Dec. 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. Apr. 13 June 14 Dec. 31 Bal. Retained Earnings 3,100,000 1,240,000 Jan. 1 Bal. Dec. 31 4,875,000 Dec. 31 Bal. Treasury Stock Jan. 1 Bal. 288,000 Mar 15 Oct. 30 Check My Work Jan. 1 Bal Oct. 30 Dec. 31 Bal. 288,000 Mar. 15 Paid-In Capital from Sale of Treasury Stock Mar. 15 Stock Dividends Distributable June 14 Stock Dividends Dec. 31 Cash Dividends Dec. 31 2. Journalize the entries to record the transactions, and post to the eight selected accounts. Assume that the closing entry for revenues and expenses has been made and post net income of $11,336,000 to the retained earnings account. If an amount box does not require an entry, leave it blank. Jan. 15. Paid cash dividends of $0.15 per share on the common stock. The dividend had been property recorded when declared on December 1 of the preceding fiscal year for $64,800. Check My Work 2. Journalize the entries to record the transactions, and post to the eight selected accounts. Assume that the closing entry for revenues and expenses has been made and post net income of $11,336,000 to the retained earnings account. If an amount box does not require an entry, leave it blank. Jan. 15. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $64,800. Date Account Jan. 15 Cash Dividends Payable Cash Mar. 15. Sold all of the treasury stock for $18 per share. Date Mar 15 Cash Account Treasury Stock Paid-In Capital from Sale of Treasury Stock Apr. 13. Issued 90,000 shares of common stock for $1,620,000 Debit Credit Date Account Apr. 13 Cash Common Stock Paid-In Capital in Excess of Stated Value-Common Stock Debit Credit Debit Credit June 14. Declared a 5% on common stock, to be capitalized at the market price of the stock, which is $20 per share. Date June 14 Stock Dividends Account 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 July 16 Stock Dividends Distributable Common Stock Debit Credit Oct. 30. Purchased 30,000 shares of treasury stock for $20 per share, Date Oct. 30 Treasury Stock Cash Account Debit Credit Dec. 30. Declared a $0.10-per-share dividend on common stock. Debit Credit Account Debit Credit Date Dec. 30 Cash Dividends Cash Dividends Payable Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Account Dec. 31 Retained Earnings Stock Dividends Cash Dividends Debit Credit 3. Prepare a statement of stockholders' equity for the year ended December 31, 2011. Assume that net income was $11,336,000 for the year ended December 31, 2011. 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. 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 Treasury Earnings Stock Balances, January 1 Check My Work eBook Statement of Stockholdersy Equity For the Year Ended December 31, 2011 Paid-In Capital in Paid-In Common Stock Excess of Stated Value Capital from Sale of Treasury Stock Retained Treasury Earnings Stock 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, 2011, balance sheet. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Stockholders' Equity Paid-In Capital: Nav-Go Enterprises Inc. Balance Sheet December 31, 201 Nav-Go Enterprises Inc. Balance Sheet December 31, 2011 Stockholders' Equity Paid-In Capital: Common Stock, $10 Stated Value (700,000 Shares Authorized, 598,500 Shares Issued) Excess of Issue Price Over Stated Value From Sale of Treasury Stock Total Paid-In Capital Retained Earnings Total Treasury Stock (30,000 Shares, at Cost) Total Stockholders' Equity TO My Wi 1. Remember that the numbers from the T accounts will used to prepare the statement of stockholders' equity and the balance sheet. As you post the journal entres it important to work carefully Check your work to insure that you have posted the correct numbers to the appropriate side of the T account. Also, make sure that your account totals are correct 2. The purchase of treasury stock is typicaly recorded using the cost method. When the company resells shares of treasury stock pay attention to the price these shares are being sold for and the price onginally paid to reacquire these shares. On the date of declaration of a cash dividend, the corporation is legally obligated to pay that dividend. When the company declares a cash ne stock dividend keen in mind the neminus stock transactions that have not would these transactions have an affect on the amount.of.the cash dividend Check My Work