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Entries for Selected Corporate Transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Nav-Go Enterprises' stockholders' equity accounts, with balances on January 1, 2011, 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. 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: Pald-In Capital from Sale of Treasury Stock: Stock Dividends Distributable; Stock Dividends; Cash Dividends. Check My Work 4 more Check My Work uses remaining Previous

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Nav-Go Enterprises Date Account 15-Jan Cash Dividends Payable Cash Credit Calculation Debit 34,320 34,320 324,000 15-Mar Cash Treasury Stock Paid in Capital from Sale of Treasury Stock =48,000*6.75 288,000 36,000 =324,000-288,000 1,600,000 13-Apr Cash Common Stock Paid in Capital in Excess of Stated Value-CS =200,000*8 1,000,000 =200,000*5 600,000 =1,600,000-1,000,000 184,500 14-Jun Stock Dividends Stock Dividends Distributable Paid in Capital in Excess of Stated Value-CS =24,600*7.50 123,000 =24,600*5 61,500 Workings below for 24,600 shares 123,000 16-Jul Stock Dividends Distributable Common Stock 123,000 300,000 =50,000*6 30-Oct Treasury Stock Cash 300,000 63,568 30-Dec Cash Dividends Cash Dividends Payable Workings below 63,568 248,068 31-Dec Retained Earnings Stock Dividends Cash Dividends 184,500 63,568 Workings Cash Dividends Opening Shares 13-Apr Shares Issued Subtotal 14-Jun 3% Stock Dividends Number of Common Shares Issued 30-Oct Treasury Stock Number of Common Shares Outstanding Cash Dividend per share 30-Dec Cash Dividends =820,000*3% 620,000 200,000 820,000 24,600 844,600 (50,000) 794,600 0.08 63,568 =794,600*0.08

Nav-Go Enterprises T Accounts Date Debit Date Credit Common Stock Op bal $3,100,000 13-Apr $1,000,000 16-Jul $ 123,000 Date Debit Date Credit Paid in Capital in Excess of Stated Value-CS Op bal $1,240,000 13-Apr $ 600,000 14-Jun $ 61,500 Date Debit Date Credit Retained Earnings 31-Dec $ 248,068 Op bal $ 4,875,000 31-Dec $ 775,000 Date Debit Date Credit Treasury Stock Op bal $288,000 15-Mar $ 288,000 30-Oct $300,000 Bal $4,223,000 Paid in Capital from Sale of Treasury Stock 15-Mar $ 36,000 Bal. $1,901,500 Stock Dividends Distributable 16-Jul $123,000 14-Jun $ 123,000 Bal. $ 5,401,932 Bal. $300,000 Stock Dividends Cash Dividends 14-Jun $184,500 31-Dec $ 184,500 30-Dec $ 63,568 31-Dec $ 63,568 Bal. $ 36,000 Bal. $ . Bal. $ Bal. $ .

Nav-Go Enterprises Statement of Stockholders Equity For the Year Ended December 31, 20Y1 Paid in Capital in Excess Paid in Capital from Common Stock of Stated Value Sale of Treasury Stock 3,100,000 1,240,000 1,000,000 600,000 Balance, January 1 Issued common stock Net Income Cash Dividends Stock Dividends Sale of Treasury Stock Purchase of Treasury Stock Balance, December 31 Retained Earnings Treasury Stock Total Equity 4,875,000 (288,000) 8,927,000 1,600,000 775,000 775,000 (63,568) (63,568) (184,500) 288,000 324,000 (300,000) (300,000) 5,401,932 (300,000) 11,262,432 123,000 61,500 36,000 4,223,000 1,901,500 36,000

Nav-Go Enterprises Statement of Stockholders Equity As of Dec 31, 20Y1 4,223,000 1,901,500 36,000 Paid in Capital Common Stock - $5 stated value (900,000 shares authorized, 844,600 shares issued & 794,600 shares outstanding) Paid in Capital in Excess of Stated Value-Common Stock Paid in Capital from Sale of Treasury Stock Total Paid in Capital Retained Earnings Total Less: Treasury Stock (50,000 shares @ $6 per share) Total Stockholders Equity 6,160,500 5,401,932 11,562,432 (300,000) 11,262,432