Advanced Life Co. is an HMO for businesses in the Albuquerque area. The following account balances appear on the balance sheet of Advanced Life Co.: Common stock (240,000 shares authorized; 5,000 shares issued), $125 par, $625,000; Paid-in capital in excess of par common stock, $125,000; and Retained earnings, $7,500,000. The board of directors declared a 1% stock dividend when the market price of the stock was $155 a share. Advanced Life Co. reported no income or loss for the current year.

a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value. If an amount box does not require an entry, leave it blank.

	Retained Earnings	fill in the blank a24797063030014_2	fill in the blank a24797063030014_3
	Stock Dividends Distributable	fill in the blank a24797063030014_5	fill in the blank a24797063030014_6
	Paid-In Capital in Excess of Par-Common Stock	fill in the blank a24797063030014_8	fill in the blank a24797063030014_9

a2. Journalize the entry to record the issuance of the stock certificates. If an amount box does not require an entry, leave it blank.

		fill in the blank 5eacfdfa6000fe5_2	fill in the blank 5eacfdfa6000fe5_3
		fill in the blank 5eacfdfa6000fe5_5	fill in the blank 5eacfdfa6000fe5_6

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	$fill in the blank c442e2032ffc05c_1
Total retained earnings	$fill in the blank c442e2032ffc05c_2
Total stockholders' equity	$fill in the blank c442e2032ffc05c_3

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	$fill in the blank c442e2032ffc05c_4
Total retained earnings	$fill in the blank c442e2032ffc05c_5
Total stockholders' equity	$fill in the blank c442e2032ffc05c_6