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 (440,000 shares authorized; 8,000 shares issued), $100 par, $800,000; Pald-in capital in excess of par common stock, $160,000; and Retained earnings, $8,800,000 The board of directors declared a 1% stock dividend when the market price of the stock was $124 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. Stock Dividends Stock Dividends Distributable 59 Pald-In Capital in Excess of Par-Common Stock Feedback Check My Work Recall that a stock dividend affects only stockholders' equity. a2. Journalile the entry to record the issuance of the stock certificates. If an amount box does not require an entry, leave it blank. Stock Dividends Distributable Common Stock Feedback Check My Work Partially correct 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. a 2. Journalize the entry to record the issuance of the stock certificates. If an amount box does not require an entry, leave it blank. Stock Dividends Distributable Common Stock Feedback Ockly W 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 pald-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 100 Total stockholders' equity