Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Lifes balance sheet: Common stock (900,000 shares authorized; 460,000 shares issued), $5 par, $2,300,000; Paid-in capital in excess of parcommon stock, $900,000; and Retained earnings, $33,595,000. The board of directors declared a 1% stock dividend when the market price of the stock was $13 a share. Healthy Life reported no income or loss for the current year.

Required:

	a. Journalize the entries to record (1) the declaration of the dividend, capitalizing an amount equal to market value, and (2) the issuance of the stock certificates. Refer to the Chart of Accounts for exact wording of account titles.
	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.
	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.

a. Journalize the entries to record (1) the declaration of the dividend on December 1, capitalizing an amount equal to market value, and (2) the issuance of the stock certificates on December 31. Refer to the Chart of Accounts for exact wording of account tities. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE POST, REF DEBIT CREDIT ASSETSLIABILITIES EQUITY