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' equity accounts of Nav-Go Enterprises Inc., with balances on January 1, 2014, are as follows: OBJ. 3, 4, 5,6 al lders' equity, ,432 Common Stock, $5 stated value (900,000 shares authorized, $3,100,000 1,240,000 4,875,000 288,000 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 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 $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.

Explanation / Answer

*[3% x (620000-48000+48000+200000)] = 3% x 820000 = 24600 shares

**[$0.08 x (820000 + 24600 - 50000)] = $0.08 x 794600 = $63568

Common Stock Treasury Stock Jan. 1 Bal. 3100000 Jan. 1 Bal. 288000 Mar. 15 288000 Apr. 13 1000000 Oct. 30 300000 Jul. 16 123000 Dec. 31 Bal. 300000 Dec. 31 Bal. 4223000 Paid-in Capital from Sale of Treasury Stock Paid-in Capital in Excess of Stated Value Mar. 15 36000 Jan. 1 Bal. 1240000 Dec. 31 Bal. 36000 Apr. 13 600000 Jun. 14 61500 Stock Dividends Distributable Dec. 31 Bal. 1901500 Jul. 16 123000 Jun. 14 123000 Dec. 31 Bal. 0 Retained Earnings Dec. 31 184500 Jan. 1 Bal. 4875000 Stock Dividends Dec. 31 63568 Dec. 31 775000 Jun. 14 184500 Dec. 31 184500 Dec. 31 Bal. 5401932 Dec. 31 Bal. 0 Cash Dividends Dec. 30 63568 Dec. 31 63568 Dec. 31 Bal. 0

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.