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, $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 two dividends accounts to Retained Earnings

Journalize the entries to record the transactions, and post to the eight selected accounts. If an amount box does not require an entry, leave it blank.

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.

Date	Account	Debit	Credit
Jan. 15

Mar. 15. Sold all of the treasury stock for $6.75 per share.

Date	Account	Debit	Credit
Mar. 15

Apr. 13. Issued 200,000 shares of common stock for $8 per share.

Date	Account	Debit	Credit
Apr. 13

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.

Date	Account	Debit	Credit
June 14

July 16. Issued stock for stock dividend declared on June 14.

Date	Account	Debit	Credit
July 16

Oct. 30. Purchased 50,000 shares of treasury stock for $6 per share.

Date	Account	Debit	Credit
Oct. 30

Dec. 30. Declared an $0.08-per-share dividend on common stock.

Date	Account	Debit	Credit
Dec. 30

Dec. 31. Closed the two dividends accounts to Retained Earnings.

Date	Account	Debit	Credit
Dec. 31

Answer 1

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.

Date	Account	Debit	Credit
Jan. 15	Dividend payable	34320
	Cash		34320

Mar. 15. Sold all of the treasury stock for $6.75 per share.

Date	Account	Debit	Credit
Mar. 15	Cash (48000*6.75)	324000
	Treasury Stock		288000
	Paid in capital from sale of treasury Stock		36000

Apr. 13. Issued 200,000 shares of common stock for $8 per share.

Date	Account	Debit	Credit
Apr. 13	Cash (200000*8)	1600000
	Common Stock		1000000
	Paid in capital in excess of stated value-Common Stock		600000

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.

Date	Account	Debit	Credit
June 14	Stock dividend (868000*3%*7.5)	195300
	Common Stock dividend distributable		130200
	Paid in capital in excess of stated value-Common stock		65100

July 16. Issued stock for stock dividend declared on June 14.

Date	Account	Debit	Credit
July 16	Common Stock dividend distributable	130200
	Common Stock		130200

Oct. 30. Purchased 50,000 shares of treasury stock for $6 per share.

Date	Account	Debit	Credit
Oct. 30	Treasury Stock (50000*6)	300000
	Cash		300000

Dec. 30. Declared an $0.08-per-share dividend on common stock.

Date	Account	Debit	Credit
Dec. 30	Cash dividend (844040*.08)	67523
	Dividend payable		67523

Dec. 31. Closed the two dividends accounts to Retained Earnings.

Date	Account	Debit	Credit
Dec. 31	Retained earnings	262823
	Cash dividend		67523
	Stock dividend		195300