Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Lifes balance sheet: Common stock (420,000 shares authorized ; 3,000 shares issued), $25 par, $75,000; Paid-In Capital in excess of parcommon stock, $15,000; and Retained earnings, $900,000. The board of directors declared a 2% stock dividend when the market price of the stock was $34 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	Account	Debit	Credit
blank	CashNo Entry RequiredPaid-In Capital in Excess of Par-Common StockStock DividendsStock Dividends Distributable
	CashNo Entry RequiredStock DividendsStock Dividends DistributableTreasury Stock
	CashCommon StockNo Entry RequiredPaid-In Capital in Excess of Par-Common StockStock Dividends

Feedback Area

Feedback

Question Content Area

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

blank	Account	Debit	Credit
blank	Common StockNo Entry RequiredPaid-In Capital in Excess of Par-Common StockStock DividendsStock Dividends Distributable	- Select -	- Select -
	Common StockNo Entry RequiredPaid-In Capital in Excess of Par-Common StockStock DividendsStock Dividends Distributable	- Select -	- Select -

Feedback Area

Feedback

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.

Line Item Description	Amount
Total paid-in capital	fill in the blank 1 of 6$
Total retained earnings	fill in the blank 2 of 6$
Total stockholders' equity	fill in the blank 3 of 6$

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.

Line Item Description	Amount
Total paid-in capital	fill in the blank 4 of 6$
Total retained earnings	fill in the blank 5 of 6$
Total stockholders' equity	fill in the blank 6 of 6$