Entries for stock dividends

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 $(350,000$ shares authorized ; $5,000$ shares issued$),$ $$100$ par, $$500,000$; Paid$-$In Capital in excess of par$-$common stock, $$50,000$; and Retained earnings, $$5,000,000.$ The board of directors declared a $1\%$ stock dividend when the market price of the stock was $$128$ 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.

a$1.$ Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value.

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a$2.$ Journalize the entry to record the issuance of the stock certificates.

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