Chrome- CengageNOWv2| Online teaching and learning resource from Cengage Learning v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker%3&takeAssignmentSessionLocator=&inprogress%3Dfalse Instructions 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; 470,000 shares issued), $5 par, $2,350,000; Paid-in capital in excess of par-common stock, $1,000,000; and Retained earnings, $33,045,000. The board of directors declared a 1% stock dividend when the market price of the stock was $13 a share. Senior Life Co.reported no income or loss fo the current year. Required: A. Journalize the entries to record (1) the de claration 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 titles. B. Determine the following amounts be fore 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) to tal paid-in capital, (2) total re tained earnings, and (3) to tal stockholders'equity.
Chrome- CengageNOWv2| Online teaching and learning resource from Cengage Learning v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker%3&takeAssignmentSessionLocator=&inprogress%3Dfalse Instructions 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; 470,000 shares issued), $5 par, $2,350,000; Paid-in capital in excess of par-common stock, $1,000,000; and Retained earnings, $33,045,000. The board of directors declared a 1% stock dividend when the market price of the stock was $13 a share. Senior Life Co.reported no income or loss fo the current year. Required: A. Journalize the entries to record (1) the de claration 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 titles. B. Determine the following amounts be fore 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) to tal paid-in capital, (2) total re tained earnings, and (3) to tal stockholders'equity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Instructions
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; 470,000 shares issued), $5 par, $2,350,000; Paid-in capital in excess of par-common stock, $1,000,000; and Retained earnings,
$33,045,000. The board of directors declared a 1% stock dividend when the market price of the stock was $13 a share. Senior Life Co.reported no income or loss fo
the current year.
Required:
A. Journalize the entries to record (1) the de claration 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 titles.
B. Determine the following amounts be fore 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) to tal
paid-in capital, (2) total re tained earnings, and (3) to tal stockholders'equity.
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