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 (440,000 shares authorized; 4,000 shares issued), $75 par, $300,000; Paid-In Capital in excess of par common stock, $32,000; and Retained earnings, $2,700,000. The board of directors declared a 1% stock dividend when the market price of the stock was $102 a share. Senior Life Co. reported no income or loss for the current year.

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

	Stock Dividends debit?
	Stock Dividends Distributable credit is 3,000
	Paid-In Capital in Excess of Par-Common Stock debit ?

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

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	$