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

The T accounts are given below:

Common Stock
		Jan 1		2,000,000
		Apr 13		400,000
		July 16		96,000
		Dec 31		$2,496,000

Paid-In Capital in Excess of Stated Value - Common Stock
		Jan 1	400,000
		Apr 13	320,000
		June 14	96,000
		Dec 31	$816,000

Retained Earnings
Dec 31	229,856	Jan 1	4,540,000
		Dec 31	$4,310,144

Treasury stock
Jan 1		280,000	Mar 15		280,000
Oct 30		247,000
Dec 31		$247,000

Paid in Capital from Sale of Treasury Stock
		Mar 15	60,000

Stock Dividends distributable
Jul 16	96,000	jun 14	96,000

Stock Dividends
Jun 14	192,000	Dec 31	192,000

Cash dividends
Dec 30	37856	Dec 31	37856