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 (230,000 shares authorized; 8,000 shares issued), $50 par, $400,000; Paid-In Capital in excess of par common stock, $80,000; and Retained earnings, $3,200,000. The board of directors declared a 2% stock dividend when the market price of the stock was $63 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.

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

	Stock Dividends	fill in the blank 642825054f80f8b_2	fill in the blank 642825054f80f8b_3
	Stock Dividends Distributable	fill in the blank 642825054f80f8b_5	fill in the blank 642825054f80f8b_6
	Paid-In Capital in Excess of Par-Common Stock	fill in the blank 642825054f80f8b_8	fill in the blank 642825054f80f8b_9

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

	Stock Dividends Distributable	fill in the blank 4c88b5044fac057_2
	Common Stock		fill in the blank 4c88b5044fac057_4

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 0fe1beff2fb307a_1
Total retained earnings	$fill in the blank 0fe1beff2fb307a_2
Total stockholders' equity	$fill in the blank 0fe1beff2fb307a_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 0fe1beff2fb307a_4
Total retained earnings	$fill in the blank 0fe1beff2fb307a_5
Total stockholders' equity	$fill in the blank 0fe1beff2fb307a_6