PR 12-4B Entries for selected corporate transactions al Obj. 2.3.4 holders' equity accounts, with balances on January 1, 2011, are as follows: Common Stock, $5 stated value (900,000 shares authorized, 620,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock... Retained Earnings Treasury Stock (48,000 shares, at cost) 53.1000 1,240,000 4,875.000 288.000 Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Navo-Go Enterprises Chapter 12 Corporations: Organization, Stock Transactions, and Dividends 619 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. Instructions 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. Also prepare T accounts for the following: Paid In Capital from Sale of Treasury Stock; Stock Divi- dends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions, and post to the eight selected accounts. As- sume that the closing entry for revenues and expenses has been made and post net income of $775,000 to the retained earnings account. 3. Prepare a statement of stockholders' equity for the year ended December 31, 20Y1. Assume that net income was $775,000 for the year ended December 31, 20Y6. 4. Prepare the "Stockholders' Equity" section of the December 31, 20Y1, balance sheet