Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 57

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, 2016, are as follows:

The following selected transactions occurred during the year:

Instructions
1. Enter the January 1 balances in T accounts for the stockholders' equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends.
2. Journalize the entries to record the transactions, and post to the eight selected accounts.
3. Prepare a retained earnings statement for the year ended December 31, 2016.
4. Prepare the Stockholders' Equity section of the December 31, 2016, balance sheet.