Question
Entries for Stock Dividends Senior Life Co. is an HMO for businesses in the Portland area. The following account balances appear on the balance sheet
Entries for Stock Dividends
Senior Life Co. is an HMO for businesses in the Portland area. The following account balances appear on the balance sheet of Senior Life Co.: Common stock (380,000 shares authorized; 7,000 shares issued), $125 par, $875,000; Paid-In Capital in excess of par common stock, $175,000; and Retained earnings, $7,875,000. The board of directors declared a 2% stock dividend when the market price of the stock was $170 a share. Senior Life Co. 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.
Question Content Area
a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value.
blank | CashNo Entry RequiredPaid-In Capital in Excess of Par-Common StockStock Dividends DistributableStock DividendsStock Dividends | Stock Dividends | Stock Dividends |
CashNo Entry RequiredStock Dividends DistributableStock DividendsTreasury StockStock Dividends Distributable | Stock Dividends Distributable | Stock Dividends Distributable | |
CashCommon StockNo Entry RequiredPaid-In Capital in Excess of Par-Common StockStock DividendsPaid-In Capital in Excess of Par-Common Stock | Paid-In Capital in Excess of Par-Common Stock | Paid-In Capital in Excess of Par-Common Stock |
Question Content Area
a2. Journalize the entry to record the issuance of the stock certificates.
blank | Common StockNo Entry RequiredPaid-In Capital in Excess of Par-Common StockStock DividendsStock Dividends DistributableStock Dividends Distributable | Stock Dividends Distributable | |
Common StockNo Entry RequiredPaid-In Capital in Excess of Par-Common StockStock Dividends DistributableStock DividendsCommon Stock | Common Stock |
Question Content Area
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 65e3e602c007006_1 |
Total retained earnings | $fill in the blank 65e3e602c007006_2 |
Total stockholders' equity | $fill in the blank 65e3e602c007006_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 65e3e602c007006_4 |
Total retained earnings | $fill in the blank 65e3e602c007006_5 |
Total stockholders' equity | $fill in the blank 65e3e602c007006_6 |
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