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 (340,000 shares authorized 6,000 shares issued), $50 par, $300,000; Paid-In Capital in excess of par-common stock, $30,000; and Retained earnings, $2,400,000. The board of directors declared a 2% stock dividend when the market price of the stock was $69 a share. Healthy Life reported no income or loss for the current year. If an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required from the dropdown. a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value. Stock Dividends Stock Dividends Distributable Paid-In Capital in Excess of Par-Common Stock Feedback Check My Work Recall that a stock dividend affects only stockholders' equity. Learning Objective 3. a2. Journalize the entry to record the issuance of the stock certificates. Stock Dividends Distributable 6,000 Common Stock 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 $330,000V 2,400,000 2,730,000 Feedback Check My Work Identify the balances of all the equity accounts before the stock dividend. What affect does a stock dividend have on the equity accounts? What account(s) would increase and what account(s) would decrease? Learning Objective 3