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 (400,000 shares authorized, 280,000 shares issued) |
$2,800,000 |
Paid-In Capital in Excess of Stated Value-Common Stock |
550,000 |
Retained Earnings |
6,360,000 |
Treasury Stock (28,000 shares, at cost) |
392,000 |
The following selected transactions occurred during the year:
Jan. 15. |
Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $37,800. |
Mar. 15. |
Sold all of the treasury stock for $17 per share. |
Apr. 13. |
Issued 55,000 shares of common stock for $880,000. |
June 14. |
Declared a 5% 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 18,000 shares of treasury stock for $19 per share. |
Dec. 30. |
Declared a $0.18-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.
3.Prepare a statement of stockholders’ equity for the year ended December 31, 20Y1. Assume that net income was $6,614,000 for the year ended December 31, 20Y1. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank or enter “0”.
Nav-Go Enterprises Inc.
Statement of Stockholders’ Equity
For the Year Ended December 31, 20Y1 |
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Common Stock
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Paid-In
Capital in
Excess of
Stated Value
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Paid-In
Capital from Sale of
Treasury Stock
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Retained
Earnings
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Treasury
Stock
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Total
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$fill in the blank 96 |
$fill in the blank 97 |
$fill in the blank 98 |
$fill in the blank 99 |
$fill in the blank 100 |
$fill in the blank 101 |
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fill in the blank 103 |
fill in the blank 104 |
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fill in the blank 105 |
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fill in the blank 107 |
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fill in the blank 110 |
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fill in the blank 118 |
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fill in the blank 122 |
fill in the blank 123 |
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$fill in the blank 125 |
$fill in the blank 126 |
$fill in the blank 127 |
$fill in the blank 128 |
$fill in the blank 129 |
$fill in the blank 130 |
4.Prepare the “Stockholders’ Equity” section of the December 31, 20Y1, balance sheet. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Nav-Go Enterprises Inc.
Balance Sheet
December 31, 20Y1 |
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Stockholders' Equity |
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Paid-In Capital: |
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fill in the blank 132 |
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fill in the blank 134 |
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fill in the blank 136 |
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Total Paid-In Capital |
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fill in the blank 137 |
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fill in the blank 139 |
Total |
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fill in the blank 140 |
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fill in the blank 142 |
Total Stockholders' Equity |
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fill in the blank 143 |