Healthy Life Co is an HMO for businesses in the Fresno area The following account balances appear on Healthy Lifes balance sheet Common stock (220,000 shares authorized 4,000 shares issued), $25 par, $100,000 Paid In Capital in excess of parcommon stock, $20,000 and Retained earnings, $900,000 The board of directors declared a 2 stock dividend when the market price of the stock was $32 a share Healthy Life reported no income or loss for the current year If no entry is required, select No entry required and leave the amount boxes blank If an amount box does not require an entry, leave it blank 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 DividendsStock Dividends DistributableStock Dividends Stock Dividends Stock Dividends CashNo Entry RequiredStock DividendsStock Dividends DistributableTreasury 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 Feedback Area Feedback a1 Recall that a stock dividend affects only stockholders' equity 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 Stock Dividends Distributable Common StockNo Entry RequiredPaid In Capital in Excess of Par Common StockStock DividendsStock Dividends DistributableCommon Stock Common Stock Common Stock Feedback Area Feedback a2 Recall that a stock dividend affects only stockholders' equity 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 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

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Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Lifes balance sheet: Common stock (220,000

Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Lifes balance sheet: Common stock (220,000 shares authorized ; 4,000 shares issued), $25 par, $100,000; Paid-In Capital in excess of parcommon stock, $20,000; and Retained earnings, $900,000. The board of directors declared a 2% stock dividend when the market price of the stock was $32 a share. Healthy Life reported no income or loss for the current year.

If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

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 DividendsStock Dividends DistributableStock Dividends	Stock Dividends	Stock Dividends
	CashNo Entry RequiredStock DividendsStock Dividends DistributableTreasury 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

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a1. Recall that a stock dividend affects only stockholders' equity.

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	Stock Dividends Distributable
	Common StockNo Entry RequiredPaid-In Capital in Excess of Par-Common StockStock DividendsStock Dividends DistributableCommon Stock	Common Stock	Common Stock

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a2. Recall that a stock dividend affects only stockholders' equity.

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
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.