Entries for 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: Common stock (340,000 shares authorized ; 5,000 shares issued), $100 par, $500,000; Paid-In Capital in excess of par—common stock, $100,000; and Retained earnings, $5,500,000. The board of directors declared a 2% stock dividend when the market price of the stock was $137 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. a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value. Stock Dividends fill in the blank 8fe98ffa001500b_2 fill in the blank 8fe98ffa001500b_3 Stock Dividends Distributable fill in the blank 8fe98ffa001500b_5 fill in the blank 8fe98ffa001500b_6 Paid-In Capital in Excess of Par-Common Stock fill in the blank 8fe98ffa001500b_8 fill in the blank 8fe98ffa001500b_9 Feedback a1. Recall that a stock dividend affects only stockholders' equity. a2. Journalize the entry to record the issuance of the stock certificates. Stock Dividends Distributable fill in the blank c23a3ff8407a06a_2 fill in the blank c23a3ff8407a06a_3 Common Stock fill in the blank c23a3ff8407a06a_5 fill in the blank c23a3ff8407a06a_6 Feedback a2. Recall that a stock dividend affects only stockholders' equity. 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 $fill in the blank 283c62f90fb3fd0_1 Total retained earnings $fill in the blank 283c62f90fb3fd0_2 Total stockholders' equity $fill in the blank 283c62f90fb3fd0_3 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 $fill in the blank 283c62f90fb3fd0_4 Total retained earnings $fill in the blank 283c62f90fb3fd0_5 Total stockholders' equity $fill in the blank 283c62f90fb3fd0_6

Entries for 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: Common stock (340,000 shares authorized ; 5,000 shares issued), $100 par, $500,000; Paid-In Capital in excess of par—common stock, $100,000; and Retained earnings, $5,500,000. The board of directors declared a 2% stock dividend when the market price of the stock was $137 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. a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value. Stock Dividends fill in the blank 8fe98ffa001500b_2 fill in the blank 8fe98ffa001500b_3 Stock Dividends Distributable fill in the blank 8fe98ffa001500b_5 fill in the blank 8fe98ffa001500b_6 Paid-In Capital in Excess of Par-Common Stock fill in the blank 8fe98ffa001500b_8 fill in the blank 8fe98ffa001500b_9 Feedback a1. Recall that a stock dividend affects only stockholders' equity. a2. Journalize the entry to record the issuance of the stock certificates. Stock Dividends Distributable fill in the blank c23a3ff8407a06a_2 fill in the blank c23a3ff8407a06a_3 Common Stock fill in the blank c23a3ff8407a06a_5 fill in the blank c23a3ff8407a06a_6 Feedback a2. Recall that a stock dividend affects only stockholders' equity. 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 $fill in the blank 283c62f90fb3fd0_1 Total retained earnings $fill in the blank 283c62f90fb3fd0_2 Total stockholders' equity $fill in the blank 283c62f90fb3fd0_3 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 $fill in the blank 283c62f90fb3fd0_4 Total retained earnings $fill in the blank 283c62f90fb3fd0_5 Total stockholders' equity $fill in the blank 283c62f90fb3fd0_6

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entries for 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: Common stock (340,000 shares authorized ; 5,000 shares issued), $100 par, $500,000; Paid-In Capital in excess of par—common stock, $100,000; and Retained earnings, $5,500,000. The board of directors declared a 2% stock dividend when the market price of the stock was $137 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.

a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value.

Stock Dividends	fill in the blank 8fe98ffa001500b_2	fill in the blank 8fe98ffa001500b_3
Stock Dividends Distributable	fill in the blank 8fe98ffa001500b_5	fill in the blank 8fe98ffa001500b_6
Paid-In Capital in Excess of Par-Common Stock	fill in the blank 8fe98ffa001500b_8	fill in the blank 8fe98ffa001500b_9

Feedback

a1. Recall that a stock dividend affects only stockholders' equity.

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

	Stock Dividends Distributable	fill in the blank c23a3ff8407a06a_2	fill in the blank c23a3ff8407a06a_3
	Common Stock	fill in the blank c23a3ff8407a06a_5	fill in the blank c23a3ff8407a06a_6

Feedback

a2. Recall that a stock dividend affects only stockholders' equity.

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	$fill in the blank 283c62f90fb3fd0_1
Total retained earnings	$fill in the blank 283c62f90fb3fd0_2
Total stockholders' equity	$fill in the blank 283c62f90fb3fd0_3

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	$fill in the blank 283c62f90fb3fd0_4
Total retained earnings	$fill in the blank 283c62f90fb3fd0_5
Total stockholders' equity	$fill in the blank 283c62f90fb3fd0_6

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