Entries for stock dividends

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 $(600,000$ shares authorized; $400,000$ shares issued$),$ $$8$ par, $$3,200,000$; Paid$-$in capital in excess of par$-$common stock, $$800,000$; and retained earnings, $$25,600,000.$ The board of directors declared a $2\%$ stock dividend when the market price of the stock was $$19$ a share. Advanced Life Co$.$ reported no income or loss for the current year.

Required:

a$.$ Journalize the entries to record $(1)$ the declaration of the dividend on December $1,$ capitalizing an amount equal to market value, and $(2)$ the issuance of the stock certificates on December $31.$ Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines fo journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

b$.$ Determine the following amounts before the stock dividend was declared: $(1)$ total paid$-$in capital, $(2)$ toal retained earnings, and $(3)$ 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.