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, 2041, are as follows: Common Stock, $10 stated value (300,000 shares authorized, $2,000,000 200,000 shares issued) Paid-In Capital in Excess of Stated Value-Common Stock 400,000 Retained Earnings 4,540,000 Treasury Stock (20,000 shares, at cost) 280,000 The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of $0.13 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $23,400. Mar. Sold all of the treasury stock for $17 per share. 15. Apr. Issued 40,000 shares of common stock for $720,000. 13. June Declared a 4% stock dividend on common stock, to be capitalized at the market price of the 14. stock, which is $20 per share. July 16. Issued shares of stock for the stock dividend declared on June 14. Oct. 30. Purchased 13,000 shares of treasury stock for $19 per share. Dec. Declared a $0.16-per-share dividend on common stock. 30. 31. Closed the two dividends accounts to Retained Earnings. Required:

Answer 1

Nav- GO Enterprises
Statement of Stockholder Equity
Particular	Common Stock	Paid in Cpaital in Excess of Stated Value	Paid in Cpaital in from sale of treasury stock	Stock Dividend Distributable	Retained Earning	Treasury Stock	Total Stockholder Equit
Balance Jan-01	$2,000,000	$400,000			$4,540,000	$280,000	$6,660,000
Paid Cash Dividend ( No impact on equity)							$0
Sold treasury stock			$60,000			-$280,000	$340,000
Issue common stock	$400,000	$320,000					$720,000
Declared Stock dividend (240000*4%*20)		$96,000		$96,000	-$192,000		$0
Issues share of stock for stock dividend	$96,000			-$96,000			$0
Purchase 13000 Shares of treasury stock (13000*19)						$247,000	-$247,000
Declared Cash Dividend (20000+40000+9600-13000)*0.16					-$9,056		-$9,056
Balance Dec 31	$2,496,000	$816,000	$60,000	$0	$4,338,944	$247,000	$7,463,944

Stockholders’ Equity Section of Balance Sheet
Paid-In Capital:
Common Stock, $10 Stated Value (300,000 Shares Authorized, 249600 Shares Issued)	$2,496,000
Paid-In Capital In Excess Of Stated Value	$816,000
Paid in capital from Sale Of Treasury Stock	$60,000
Total Paid-In Capital		$3,372,000
Retained Earnings		$4,338,944
Total		$7,710,944
Less Treasury Stock		$247,000
Total Stockholder'S Equity		$7,463,944