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 (800,000
shares authorized; 500,000 shares issued), $4 par, $2,000,000; Paid-in capital in excess of par-common stock, $1,000,000; and Retained earnings, $33,500,000. The
board of directors declared a 2% stock dividend when the market price of the stock was $13 a share. Senior Life Co. reported no income or loss for the current year.
For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required from the dropdown.
al. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value.
Stock Dividends
Stock Dividends Distributable
Paid-In Capital in Excess of Par-Common Stock
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a2. Journalize the entry to record the issuance of the stock certificates.
Stock Dividends Distributable
Common Stock
b. Determine the following amounts before the stock dividend was declared: (1) total pald-in capital, (2) total retained earnings, and (3) total stockholders' equity.
Total pald-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 pald-in capital
Total retained earnings
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