PR 13-4B Entries for selected corporate transactions Nav-Go Enterprises Inc. pro

Question

PR 13-4B Entries for selected corporate transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. The stockholders follows: OBJ. 3, 4,5,6 rs' equity, cquity accounts of Nav-Go Enterprises Inc, with balances on January 1, 2014, are as Common Stock, $5 stated value (900,000 shares authorized, $3,100,000 1,240,000 4,875,000 288,000 Treasury Stock (48,000 shares, at cost) The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of $o.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 the certificates for the dividend declared on June 14 Oct. 30. Purchased 50,000 shares of treasury stock for $6 per share. Dec. 30. Declared a so.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. Instructions 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed Also pre Stock Dividends Distributable; Stock Dividends; Cash Dividends pare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; 2. Journalize the entries to record the transactions, and post to the eight selected ac counts 3. Prepare a retained earnings statement for the year ended December 31, 2014. 4. Prepare the Stockholders' Equity section of the December 31, 2014, balance sheet.

Explanation / Answer

15-Jan Dividend payable Dr. 37200 To Bank 37200 15-Mar Bank A/c Dr 324000 To Treasury Stock 288000 To Gain on slae of stock 36000 13-Apr Bank A/c Dr 1600000 To Common Stock 1600000 30-Oct Treasury stock Dr. 300000 To Bank 300000

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