Paid-In Capital from Sale of Treasury Stock Mar. 15 180,000. Stock Dividends Distributable July 16 357,500. V June 14 357,500. Stock Dividends June 14 643,500. x Dec. 31 643,500. X Cash Dividends Dec. 30 121,167.5 X Dec. 31 121,167.51 X2. 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 $64,800. Mar. 15. Sold all of the treasury stock for $18 per share. -- Apr. 13. Issued 115,000 shares of common stock for $2,070,000 ,150,00 -- 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 643,500. X Stock Dividends Distributable 357,500. Paid-In Capital in Excess of Stated Value-Common Stock V 286,000. X July 16. Issued stock for stock dividend declared on June 14. Date Account Debit Credit July 16 Stock Dividends Distributable 357,500. Common Stock 357,500. V Oct. 30. Purchased 38,000 shares of treasury stock for $20 per share. Date Account Debit Credit Oct. 30 Treasury Stock 760,000. Cash 760,000. VDec. 30. Declared a $0.15-per-share dividend on common stock. Date Account Debit Credit Dec. 30 Cash Dividends 121,167. X Cash Dividends Payable 121,167. X Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Account Debit Credit Dec. 31 Retained Earnings 764,667. X Stock Dividends 643,500. X Cash Dividends 121,167. X3. 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 Paid-In Capital in Paid-In Excess of Capital from Sale of Retained Treasury Common Stock Stated Value Treasury Stock Earnings Stock Total Balances, January 1 V $ Issued Common Stock Net Income V Cash Dividends Stock Dividends V Sale of Treasury Stock Purchase of Treasury Stock Balances, December 31 V tA to4. 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. mm 180,000.01 9,813,500. 36,833,832.5 -760,000.( 36,073,832.5 Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends Pranks, Inc. Pranks, Inc. is a manufacturer ofjoke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock. Number of common shares authorized 800,000 Number of common shares issued 650,000 Par value of common shares $20 Par value of cumulative preferred shares $30 Paidin capital in excess of parcommon stock $7,000,000 Paidin capital in excess of parpreferred stock $0 Total retained earnings before the stock dividend is declared $33,500,000 I' No treasury share have been reissued. Preferred Dividends common Dividends Total Cash Year Dividends Total Per Share Total Per Share Year 1 40,000 40,000 0.20 0 0.00 Year 2 72,000 72,000 0.36 0 0.00 Year 3 113,000 68,000 0.34 45,000 0.09 Year 4 135,000 60,000 0.3 75,000 0.15 Year 5 150,000 60,000 0.3 90,000 0.18 Year 6 210,000 60,000 0.3 150,000 0.3 Cash Dividends The accounting manager for the company prepared the schedule of cash dividends paid from Year 1 to Year 6 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc.'s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data you've collected regarding its outstanding stock. Stock Dividend The company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $25 on December 1, and is $30 on the actual distribution date of the stock, December 31. Fill in the missing information in the following table, using the information given and your work on the other panels. All \"before\"items are before the stock dividend was declared. All \"after\" items are after the stock dividend was declared and closing entries were recorded at the end of the year. Total paidin capital before the stock dividend 'v 23,000,000 4 Total retained earnings before the stock dividend 33,500,000 V Total stockholders' equity before the stock dividend 'v 56,500,000 V Total paidin capital after the stock dividend u 23,000,000 x Total retained earnings a:er the stock dividend 33,500,000 X Total stockholders' equity after the stock dividend 'v 55/500,000 V Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. a. Treasury Stock 864,000 Cash 864,000 b. Cash 486,000 Treasury Stock 432,000 Paid-In Capital from Sale of Treasury Stock V 54,000 c. Cash 3,760,000 Preferred Stock 3,500,000 Paid-In Capital in Excess of Par-Preferred Stock 260,000 d. Cash 1,440,000 Common Stock 1,200,000 Paid-In Capital in Excess of Par-Common Stock 240,000 e. Cash 264,000 Paid-In Capital from Sale of Treasury Stock 24,000 Treasury Stock 288,000 f . Cash Dividends 222,160 X 222,160 X Cash Dividends Payable 222,160 X 222,160 X g. Cash Dividends Payable 222,160 X 222,160 X Cash 222,160 X 222,160 XSelected Stock Transactions Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year: Preferred 2% Stock, $175 par (80,000 shares authorized, 40,000 shares issued) $7,000,000 Paid-In Capital in Excess of ParPreferred Stock 840,000 Common Stock, $20 par (600,000 shares authorized, 290,000 shares issued) 5,800,000 Paid-In Capital in Excess of ParCommon Stock 750,000 Retained Earnings 30,507,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: . Purchased 36,000 shares of treasury common for $24 per share. . Sold 18,000 shares of treasury common for $27 per share. . Issued 20,000 shares of preferred 2% stock at $188. . Issued 60,000 shares of common stock at $24, receiving cash. . Sold 12,000 shares of treasury common for $22 per share. . Declared cash dividends of $3.50 per share on preferred stock and $0.04 per share on common stock. . Paid the cash dividends. D omanc'm Required: 1' Entries for Selected Corporate Transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Nav-Go Enterprises' stockholders' equity accounts, with balances on January 1, ZOYI, 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 ValueCommon Stock 1,150,000 Retained Earnings 13,620,000 Treasury stock (60,000 shares, at cost) 900,000 The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding scal year for $64,800. Mar. 15. Sold all of the treasury stock for $18 per share. Apr. 13. Issued 115,000 shares of common stock for $2,070,000. 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 38,000 shares of treasury stock for $20 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. 6,000,000 Apr. 13 1,150,000. July 16 357,500. Dec. 31 Bal. 7,507,500. Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 1,150,000 Apr. 13 690,000. X June 14 286,000. X Dec. 31 Bal. 2,126,000. X Retained Earnings Dec. 31 V 764,667.51 x Jan. 1 Bal. 13,620,000 Dec. 31 14,165,000. Dec. 31 Bal. 27,020,332.5 X Treasury Stock Jan. 1 Bal. 900,000 Mar. 15 900,000. Oct. 30 V 760,000. V Dec. 31 Bal. 760,000