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 (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 when the market price of the stock was $18 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. fill in the blank 584e43f9bf89073_2 fill in the blank 584e43f9bf89073_3 fill in the blank 584e43f9bf89073_5 fill in the blank 584e43f9bf89073_6 fill in the blank 584e43f9bf89073_8 fill in the blank 584e43f9bf89073_9 a2. Journalize the entry to record the issuance of the stock certificates. fill in the blank 6936f0ff9041fd1_2 fill in the blank 6936f0ff9041fd1_3 fill in the blank 6936f0ff9041fd1_5 fill in the blank 6936f0ff9041fd1_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 (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 when the market price of the stock was $18 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.

		fill in the blank 584e43f9bf89073_2	fill in the blank 584e43f9bf89073_3
		fill in the blank 584e43f9bf89073_5	fill in the blank 584e43f9bf89073_6
		fill in the blank 584e43f9bf89073_8	fill in the blank 584e43f9bf89073_9

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

		fill in the blank 6936f0ff9041fd1_2	fill in the blank 6936f0ff9041fd1_3
		fill in the blank 6936f0ff9041fd1_5	fill in the blank 6936f0ff9041fd1_6

Expert Solution

Step 1

Dividend means the amount of profit which is distributed to the shareholder or owner of the company. When this dividend is given in the form of stock i.e. share , then it is called stock dividend.

Necessary journal entries has been passed.

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