Entries for Selected Corporate TransactionsNav-Go Enterprises Inc. produces aeronautical navigation equipment. Navo-Go Enterprises' stockholders' equity accounts, with balances on January 1, 20Y1, are as follows:Common Stock, $5 stated value (900,000 shares authorized, 620,000 shares issued)$3,100,000Paid-In Capital in Excess of Stated Value—Common Stock1,240,000Retained Earnings4,875,000Treasury Stock (48,000 shares, at cost)288,000The following selected transactions occurred during the year:Jan. 15.Paid cash dividends of $0.06 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $34,320.Mar. 15.Sold all of the treasury stock for $6.75 per share.Apr. 13.Issued 200,000 shares of common stock for $8 per share.June 14.Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is $7.50 per share.July 16.Issued stock for stock dividend declared on June 14.Oct. 30.Purchased 50,000 shares of treasury stock for $6 per share.Dec. 30.Declared an $0.08-per-share dividend on common stock.31.Closed the credit balance of the income summary account, $775,000.31.Closed the two dividends accounts to Retained Earnings.Required:1. The January 1 balances in T accounts for the stockholders’ equity accounts have been listed below. T accounts for the following accounts have also been created: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. Common Stock Jan. 1 Bal.3,100,000 Dec. 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal.1,240,000 Dec. 31 Bal. Retained Earnings Jan. 1 Bal.4,875,000 Dec. 31 Bal. Treasury StockJan. 1 Bal.288,000 Dec. 31 Bal. Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable Stock Dividends Cash Dividends

T account represents the individual accounts in t shaped format so that the debit and credit balance…

Answered: Required: 1. The January 1 balances…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter12: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 4PB: Entries for selected corporate transactions Nav-Go Enterprises Inc. produces aeronautical navigation...

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Entries for Selected Corporate Transactions

Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Navo-Go Enterprises' stockholders' equity accounts, with balances on January 1, 20Y1, are as follows:

Common Stock, $5 stated value (900,000 shares authorized, 620,000 shares issued)	$3,100,000
Paid-In Capital in Excess of Stated Value—Common Stock	1,240,000
Retained Earnings	4,875,000
Treasury Stock (48,000 shares, at cost)	288,000

The following selected transactions occurred during the year:

Jan. 15.	Paid cash dividends of $0.06 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $34,320.
Mar. 15.	Sold all of the treasury stock for $6.75 per share.
Apr. 13.	Issued 200,000 shares of common stock for $8 per share.
June 14.	Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is $7.50 per share.
July 16.	Issued stock for stock dividend declared on June 14.
Oct. 30.	Purchased 50,000 shares of treasury stock for $6 per share.
Dec. 30.	Declared an $0.08-per-share dividend on common stock.
31.	Closed the credit balance of the income summary account, $775,000.
31.	Closed the two dividends accounts to Retained Earnings.

Required:

1. The January 1 balances in T accounts for the stockholders’ equity accounts have been listed below. T accounts for the following accounts have also been created: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends.

Common Stock
		Jan. 1 Bal.	3,100,000


		Dec. 31 Bal.

Paid-In Capital in Excess of Stated Value-Common Stock
		Jan. 1 Bal.	1,240,000


		Dec. 31 Bal.

Retained Earnings
		Jan. 1 Bal.	4,875,000

		Dec. 31 Bal.

Treasury Stock
Jan. 1 Bal.	288,000

Dec. 31 Bal.

Paid-In Capital from Sale of Treasury Stock

Stock Dividends Distributable

Stock Dividends

Cash Dividends

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