Question
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, $5 stated
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, $5 stated value (900,000 shares authorized, 620,000 shares issued) | $3,100,000 |
| Paid-In Capital in Excess of Stated ValueCommon Stock | 1,240,000 |
| Retained Earnings | 4,875,000 |
| Treasury Stock (48,000 shares, at cost) | 288,000 |
The following selected transactions occurred during the year:
| Jan. 15. | Paid cash dividends of $0.06 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 $6.75 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 $7.50 per share. |
| July 16. | Issued stock for stock dividend declared on June 14. |
| Oct. 30. | Purchased 50,000 shares of treasury stock for $6 per share. |
| Dec. 30. | Declared an $0.08-per-share dividend on common stock. |
| 31. | Closed the two dividends accounts to Retained Earnings. |
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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: CashCommon Stock, $5 Stated Value (900,000 Shares Authorized, 844,600 Shares Issued)Retained EarningsTreasury Stock (50,000 Shares at Cost)
CashExcess of Issue Price Over Stated ValueRetained EarningsTreasury Stock (50,000 Shares at Cost)
CashFrom Sale of Treasury StockRetained EarningsTreasury Stock (50,000 Shares at Cost)
Total Paid-In Capital Common Stock, $5 Stated Value (900,000 Shares Authorized, 844,600 Shares Issued)From Sale of Treasury StockRetained EarningsTreasury Stock (25,000 Shares at Cost)
Total Treasury Stock (50,000 Shares at Cost)Excess of Issue Price Over Stated Value-Common StockCashRetained Earnings
Total Stockholders' Equity
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge
9th edition
290-1259222138, 1259222136, 978-1259222139
