Ch 13-3 Exercises & Problems 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 (280,000 shares authorized; 8,000 shares issued), $75 par, $600,000; Paid-In Capital in excess of par- common stock, $64,000; and Retained earnings, $7,200,000. The board of directors declared a 1% stock dividend when the market price of the stock was $101 a share. Senior Life Co. reported no income or loss for the current year. If an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required" from the dropdown. a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value. Stock Dividends 8,080 Stock Dividends Distributable 6,000 Paid-In Capital in Excess of Par-Common Stock 2,080 a2. Journalize the entry to record the isuance of the stock certificates. Stock Dividends Distributable 6,000 Common Stock 6,000 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. Stock Dividends Distributable 6,000 Paid-In Capital in Excess of Par-Common Stock 2,080 a2. Journalize the entry to record the isuance of the stock certificates. Stock Dividends Distributable 6,000 Common Stock 6,000 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 664,000 Total retained earnings $ 7,200,000 Total stockholders' equity 7,864,000 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
Ch 13-3 Exercises & Problems 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 (280,000 shares authorized; 8,000 shares issued), $75 par, $600,000; Paid-In Capital in excess of par- common stock, $64,000; and Retained earnings, $7,200,000. The board of directors declared a 1% stock dividend when the market price of the stock was $101 a share. Senior Life Co. reported no income or loss for the current year. If an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required" from the dropdown. a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value. Stock Dividends 8,080 Stock Dividends Distributable 6,000 Paid-In Capital in Excess of Par-Common Stock 2,080 a2. Journalize the entry to record the isuance of the stock certificates. Stock Dividends Distributable 6,000 Common Stock 6,000 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. Stock Dividends Distributable 6,000 Paid-In Capital in Excess of Par-Common Stock 2,080 a2. Journalize the entry to record the isuance of the stock certificates. Stock Dividends Distributable 6,000 Common Stock 6,000 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 664,000 Total retained earnings $ 7,200,000 Total stockholders' equity 7,864,000 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you please explain how I would find the amounts after the stock dividend was declared and closing entries were recorded at the end of the year.
Transcribed Image Text:Ch 13-3 Exercises & Problems
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
(280,000 shares authorized; 8,000 shares issued), $75 par, $600,000; Paid-In Capital in excess of par- common stock, $64,000; and Retained earnings,
$7,200,000. The board of directors declared a 1% stock dividend when the market price of the stock was $101 a share. Senior Life Co. reported no income
or loss for the current year.
If an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required" from the dropdown.
a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value.
Stock Dividends
8,080
Stock Dividends Distributable
6,000
Paid-In Capital in Excess of Par-Common Stock
2,080
a2. Journalize the entry to record the isuance of the stock certificates.
Stock Dividends Distributable
6,000
Common Stock
6,000
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.
Transcribed Image Text:Stock Dividends Distributable
6,000
Paid-In Capital in Excess of Par-Common Stock
2,080
a2. Journalize the entry to record the isuance of the stock certificates.
Stock Dividends Distributable
6,000
Common Stock
6,000
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
664,000
Total retained earnings
$
7,200,000
Total stockholders' equity
7,864,000
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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