Stock Dividends

Healthy Life Co$.$ is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life's balance sheet as of January $1$: Common Stock

$(3,000,000$ shares authorized; $2,200,000$ shares issued$),$ $$15$ par, $$33,000,000$; Paid$-$In Capital in Excess of Par$-$Common Stock, $$9,000,000$; and Retained Earnings,

$$89,550,000.$

The board of directors declared a $5\%$ stock dividend on June $1.$ The market price of the stock was $$18$ per share on fune $1$ for stockholders of record July $15$ to be

distributed on August $15.$ No other stock transactions occurred during the year.

a$.$ Illustrate the effects of the declaration and distribution of the stock dividend on the accounts of Healthy Life Co$.$ If no account or activity is affected, select $"$No

effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.