Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. BE.12.08 ALGO U Entries for Stock Dividends 2 EX 1202 ALGO 3EX 12 OR ALGO 4. EX 12 09 ALGO 5 EX 12 10

image text in transcribed
1. BE.12.08 ALGO U Entries for Stock Dividends 2 EX 1202 ALGO 3EX 12 OR ALGO 4. EX 12 09 ALGO 5 EX 12 10 ALGO 6. EX 12.15 ALGO Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life's balance sheet: Common stock (210,000 shares authorized ; 6,000 shares issued), $125 par, $750,000; Paid-In Capital in excess of par-common stock, $150,000; and Retained earnings, $7,500,000. The board of directors declared a 2% stock dividend when the market price of the stock was $153 a share. Healthy Life reported no income or loss for the current year. If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. al. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value. a2. Journalize the entry to record the issuance of the stock certificates. b. Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders' equity. Total paid in capital Total retained earnings Total stockholders equity c. Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders' equity. Total paid-in capital Total retained earnings Total stockholders' equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quality Auditing Journal Notes Checklists Observations Evidence Questions Log

Authors: Leon Edward

1st Edition

1729431569, 978-1729431566

More Books

Students also viewed these Accounting questions

Question

46. GivenMX(t).2.3et.5e3t, ndp(x), E(X), V(X).

Answered: 1 week ago