Entries for Stock Dividends

Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Lifes balance sheet: Common stock (340,000 shares authorized ; 4,000 shares issued), $25 par, $100,000; Paid-In Capital in excess of parcommon stock, $20,000; and Retained earnings, $1,200,000. The board of directors declared a 2% stock dividend when the market price of the stock was $31 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.

a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value.

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		fill in the blank 46285efeb01e033_5	fill in the blank 46285efeb01e033_6
		fill in the blank 46285efeb01e033_8	fill in the blank 46285efeb01e033_9

a2. Journalize the entry to record the issuance of the stock certificates.

		fill in the blank 4c0cce010fdc004_2	fill in the blank 4c0cce010fdc004_3
		fill in the blank 4c0cce010fdc004_5	fill in the blank 4c0cce010fdc004_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 cd4aa603fffe048_1
Total retained earnings	$fill in the blank cd4aa603fffe048_2
Total stockholders' equity	$fill in the blank cd4aa603fffe048_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 cd4aa603fffe048_4
Total retained earnings	$fill in the blank cd4aa603fffe048_5
Total stockholders' equity	$fill in the blank cd4aa603fffe048_6