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 (350,000 shares authorized; 4,000 shares issued), $50 par, $200,000; Paid-in capital in excess of par- common stock, $20,000; and Retained earnings, $1,800,000. The board of directors declared a 2% stock dividend when the market price of the stock was $61 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. a2. Journalize the entry to record the issuance of the stock certificates. If an amount box does not require an entry, leave it blank. 38 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 000 eBook not require an entry, leave it blank. Show Me How a2. Journalize the entry to record the issuance of the stock certificates. If an amount box does not require an entry, leave it blank. 38 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 Show Me How Treasury Stock Transactions Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 5,100 shares of its common stock at $67 per share. On April 30, Lava Lake Inc. sold 3,600 of the reacquired shares at $72 per share. On August 22, Lava Lake Inc. sold 1,500 shares at $63 per share. a. Journalize the transactions of February 11, April 30, and August 22. If an amount box does not require an entry, leave it blank. Feb. 11 Apr. 30 Aug. 22 b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? c. For what reasons might Lava Lake have purchased the treasury stock?