Question
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
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 (550,000 shares authorized, 380,000 shares issued) | $3,800,000 |
Paid-In Capital in Excess of Stated Value-Common Stock | 700,000 |
Retained Earnings | 8,630,000 |
Treasury Stock (38,000 shares, at cost) | 532,000 |
The following selected transactions occurred during the year:
Jan. 15. | Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $41,040. |
Mar. 15. | Sold all of the treasury stock for $17 per share. |
Apr. 13. | Issued 70,000 shares of common stock for $1,260,000. |
June 14. | Declared a 4% 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 24,000 shares of treasury stock for $19 per share. |
Dec. 30. | Declared a $0.15-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. | 3,800,000 | ||
Apr. 13 | fill in the blank 2 | ||
July 16 | 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. | 700,000 | ||
Apr. 13 | fill in the blank 7 | ||
June 14 | fill in the blank 9 | ||
Dec. 31 Bal. | fill in the blank 10 |
Retained Earnings | |||
---|---|---|---|
Dec. 31 | fill in the blank 12 | Jan. 1 Bal. | 8,630,000 |
Dec. 31 | fill in the blank 14 | ||
Dec. 31 Bal. | fill in the blank 15 |
Treasury Stock | |||
---|---|---|---|
Jan. 1 Bal. | 532,000 | Mar. 15 | fill in the blank 17 |
Oct. 30 | fill in the blank 19 | ||
Dec. 31 Bal. | fill in the blank 20 |
Paid-In Capital from Sale of Treasury Stock | |||
---|---|---|---|
Mar. 15 | fill in the blank 22 |
Stock Dividends Distributable | |||
---|---|---|---|
July 16 | fill in the blank 24 | June 14 | fill in the blank 26 |
Stock Dividends | |||
---|---|---|---|
June 14 | fill in the blank 28 | Dec. 31 | fill in the blank 30 |
Cash Dividends | |||
---|---|---|---|
Dec. 30 | fill in the blank 32 | Dec. 31 | 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 $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $41,040.
Date | Account | Debit | Credit |
---|---|---|---|
Jan. 15 | Cash Dividends Payable | fill in the blank 36 | fill in the blank 37 |
Cash | fill in the blank 39 | fill in the blank 40 |
Mar. 15. Sold all of the treasury stock for $17 per share.
Date | Account | Debit | Credit |
---|---|---|---|
Mar. 15 | Cash | fill in the blank 42 | fill in the blank 43 |
Treasury Stock | fill in the blank 45 | fill in the blank 46 | |
Paid-In Capital from Sale of Treasury Stock | fill in the blank 48 | fill in the blank 49 |
Apr. 13. Issued 70,000 shares of common stock for $1,260,000
Date | Account | Debit | Credit |
---|---|---|---|
Apr. 13 | Cash | fill in the blank 51 | fill in the blank 52 |
Common Stock | fill in the blank 54 | fill in the blank 55 | |
Paid-In Capital in Excess of Stated Value-Common Stock | fill in the blank 57 | fill in the blank 58 |
June 14. Declared a 4% 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 | fill in the blank 60 | fill in the blank 61 |
Stock Dividends Distributable | fill in the blank 63 | fill in the blank 64 | |
Paid-In Capital in Excess of Stated Value-Common Stock | 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 | Stock Dividends Distributable | fill in the blank 69 | fill in the blank 70 |
Common Stock | fill in the blank 72 | fill in the blank 73 |
Oct. 30. Purchased 24,000 shares of treasury stock for $19 per share.
Date | Account | Debit | Credit |
---|---|---|---|
Oct. 30 | Treasury Stock | fill in the blank 75 | fill in the blank 76 |
Cash | fill in the blank 78 | fill in the blank 79 |
Dec. 30. Declared a $0.15-per-share dividend on common stock.
Date | Account | Debit | Credit |
---|---|---|---|
Dec. 30 | Cash Dividends | fill in the blank 81 | fill in the blank 82 |
Cash Dividends Payable | 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 | Retained Earnings | fill in the blank 87 | fill in the blank 88 |
Stock Dividends | fill in the blank 90 | fill in the blank 91 | |
Cash Dividends | fill in the blank 93 | fill in the blank 94 |
3. Prepare a statement of stockholders equity for the year ended December 31, 20Y1. Assume that net income was $8,975,000 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 | $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 |
Issued Common Stock | fill in the blank 103 | fill in the blank 104 | fill in the blank 105 | |||
Net Income | fill in the blank 107 | fill in the blank 108 | ||||
Cash Dividends | fill in the blank 110 | fill in the blank 111 | ||||
Stock Dividends | fill in the blank 113 | fill in the blank 114 | fill in the blank 115 | fill in the blank 116 | ||
Sale of Treasury Stock | fill in the blank 118 | fill in the blank 119 | fill in the blank 120 | |||
Purchase of Treasury Stock | fill in the blank 122 | fill in the blank 123 | ||||
Balances, December 31 | $fill in the blank 125 | $fill in the blank 126 | $fill in the blank 127 | $fill in the blank 128 | $fill in the blank 129 | $fill in the blank 130 |
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 (550,000 Shares Authorized, 468,000 Shares Issued) | fill in the blank 132 | |
Excess of Issue Price Over Stated Value | fill in the blank 134 | |
From Sale of Treasury Stock | fill in the blank 136 | |
Total Paid-In Capital | fill in the blank 137 | |
Retained Earnings | fill in the blank 139 | |
Total | fill in the blank 140 | |
Treasury Stock (24,000 Shares, at Cost) | fill in the blank 142 | |
Total Stockholders' Equity | fill in the blank 143 |
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