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, 20Y1, are as follows:

Common Stock, $10 stated value (700,000 shares authorized, 480,000 shares issued)	$4,800,000
Paid-In Capital in Excess of Stated Value-Common Stock	900,000
Retained Earnings	10,900,000
Treasury Stock (48,000 shares, at cost)	720,000

The following selected transactions occurred during the year:

Jan. 15.	Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $60,480.
Mar. 15.	Sold all of the treasury stock for $18 per share.
Apr. 13.	Issued 90,000 shares of common stock for $1,440,000.
June 14.	Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share.
July 16.	Issued shares of stock for the stock dividend declared on June 14.
Oct. 30.	Purchased 30,000 shares of treasury stock for $20 per share.
Dec. 30.	Declared a $0.17-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.	4,800,000
		Apr. 13
		July 16
		Dec. 31 Bal.

Paid-In Capital in Excess of Stated Value-Common Stock
		Jan. 1 Bal.	900,000
		Dec. 31 Bal.

Retained Earnings
Dec. 31		Jan. 1 Bal.	10,900,000
		Dec. 31
		Dec. 31 Bal.

Treasury Stock
Jan. 1 Bal.	720,000	Mar. 15
Oct. 30
Dec. 31 Bal.

Paid-In Capital from Sale of Treasury Stock
		Mar. 15

Stock Dividends Distributable
July 16		June 14

Stock Dividends
June 14		Dec. 31

Cash Dividends
Dec. 30		Dec. 31

Answer 1

Net Income for the year is not given, which should have been entered in Retained Earnings credit side for correct ending balance.

Common Stock
		Jan. 1 Bal.	$                   4,800,000
		Apr. 13	$                      900,000
		Jul. 16	$                      228,000
		Dec. 31 Bal.	$                   5,928,000
Paid-In Capital in Excess of Stated Value-Common Stock
		Jan. 1 Bal.	$                      900,000
		Apr. 13	$                      540,000
		Jun. 14	$                       182,400
		Dec. 31 Bal.	$                    1,622,400
Retained Earnings
Dec. 31	$           506,076	Jan. 1 Bal.	$                  10,900,000
		Dec. 31
		Dec. 31 Bal.	$                  10,393,924
Treasury Stock
Jan. 1 Bal.	$           720,000	Mar. 15	$                      720,000
Oct. 30	$           600,000
Dec. 31 Bal.	$           600,000
Paid-In Capital from Sale of Treasury Stock
		Mar. 15	$                       144,000
Stock Dividends Distributable
Jul. 16	$           228,000	Jun.14	$                      228,000
Stock Dividends
Jun.14	$            410,400	Dec. 31	$                       410,400
Cash Dividends
Dec. 30	$             95,676	Dec. 31	$                        95,676

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