Question

Entries for Selected Corporate Transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Nav.Ge Enterprises stockholders' equity accounts, with balances on January follows Common Stock, $10 stated value (800,000 shares authorized, 540,000 shares issued) Paid In Capital in Excess of Stated Value-Common Stock $5,400,000 1,050,000 12,260,000 750.000 Retained Earnings Treasury Shock (54,000 shares, at cost) 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 deared on December 1 of the preceding fiscal year for $68,040. Mar. 15. Sold all of the treasury stock for $17 per share Apr. 13. Issued 105,000 shares of common stock for $1,890,000 June 14. Declared a stock dividend on common stock, to be capitained at the market price of the stock, which is $20 per share y 16. Issued shares of stock for the stock dividend declared on June 14 Oct. 30. Purchased 14,000 shares of treasury stock for $19 per share Dec. 30. Declared a 30.17-per-share dividend on common stock 31. Closed the two dividends accounts to retained farmings Required: 1. The January 1 balances have been entered in accounts for the stockholders' equity accounts. Record the above transactions in the accounts and provide the December 31 balance where appropriate. If required, round to one decimal place Common Stock 5.400.000 Jan 15 Apr. 13

Answer 1

1.

Common Stock					Paid in Capital in Excess of Stated Value
		Jan 1 Bal	5400000				Jan 1 Bal	1050000
		Apr-13	1050000				Apr-13	840000
		Jul-16	258000				Jun-14	258000
		Dec 31 Bal	6708000				Dec 31 Bal	2148000
Retained Earnings					Treausry Stock
Dec-31	624256	Jan 1 Bal	12260000		Jan 1 Bal	756000	Mar-15	756000
		Dec-31	12750000		Oct-30	646000
		Dec 31 Bal	24385744		Dec 31 Bal	646000
Paid in Capital from Sale of Treasury Stock					Stock Dividend Distributable
		Mar-15	162000		Jul-16	258000	Jun-14	258000
Stock Dividends					Cash Dividend
Jun-14	516000	Dec-31	516000		Dec-30	108256	Dec-31	108256

2.

Date	Account Titles	Debit	Credit
Jan-15	Cash Dividend Payable	$          68,040
	Cash		$        68,040
Mar-15	Cash	$       9,18,000		=54000*17
	Treasury Stock		$     7,56,000	756000
	Paid in Capital from Sale of Treasury Stock		$     1,62,000	=918000-756000
Apr-13	Cash	$     18,90,000
	Common Stock		$   10,50,000	=105000*10
	Paid in Capital in Excess of Stated Value		$     8,40,000	=1890000-1050000
Jun-14	Stock Dividend	$       5,16,000		=(540000+105000)*4%*20
	Stock Dividend Distributable		$     2,58,000	=(540000+105000)*4%*10
	Paid in Capital in Excess of Stated Value		$     2,58,000	=516000-258000
Jul-16	Stock Dividend Distributable	$       2,58,000
	Common Stock		$     2,58,000
Oct-30	Treasury Stock	$       6,46,000		=34000*19
	Cash		$     6,46,000
Dec-30	Cash Dividend	$       1,08,256		=(540000+105000+25800-34000)*0.17
	Cash Dividend Payable		$     1,08,256
Dec-31	Retained Earnings	$       6,24,256
	Cash Dividend		$     1,08,256
	Stock Dividend		$     5,16,000

3.

	Common Stock	Paid in Capital in Excess of Stated Value	Paid in Capital from Sale of Treasury Stock	Retained Earnings	Treasury Stock	Total
Balances, Jan 1	5400000	1050000		12260000	756000	19466000
Issued Common Stock	1308000	1098000				2406000
Net Income				12750000		12750000
Cash Dividend				-108256		-108256
Stock Dividend				-516000		-516000
Sale of Treasury Stock			162000		-756000	-594000
Purchase of Treasury Stock					646000	646000
Balances, Dec 31	6708000	2148000	162000	24385744	646000	34049744

4.

Paid in Capital
Common Stock	6708000
Paid in Capital in Excess of Stated Value	2148000
Paid in Capital from Sale of Treasury Stock	162000
Total Paid in Capital		9018000
Retained Earnings		24385744
Total		33403744
Treasury Stock		-646000
Total Stockholder's Equity		32757744