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.

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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