Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life'sbalance sheet: Common stock (350,000 shares authorized; 3,000 shares issued), $100 par, $300,000; Paid-In Capitalin excess of par-common stock, $30,000; and Retained earnings, $2,700,000. The board of directors declared a 2%stock dividend when the market price of the stock was $120 a share. Healthy Life reported no income or loss for thecurrent year.<Finged BAIf 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.a2. Journalize the entry to record the issuance of the stock certificates.b. Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total

Journal Entry :— It is an act of recording transactions in books of account when transaction…

Answered: < Healthy Life Co. is an HMO for…

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 (310,000 shares authorized ; 8,000 shares issued), $25 par, $200,000; Paid-In Capital in excess of par—common stock, $40,000; and Retained earnings, $2,000,000. The board of directors declared a 1% stock dividend when the market price of the stock was $35 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. a2. Journalize the entry to record the issuance of the stock certificates. b. Determine the following amounts before the stock dividend was declared:…
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 (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, $6,600,000. The board of directors declared a 1% stock dividend when the market price of the stock was $104 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 4764020a9fc4028_2 fill in the blank 4764020a9fc4028_3 fill in the blank 4764020a9fc4028_5 fill in the blank 4764020a9fc4028_6 fill in the blank 4764020a9fc4028_8 fill in the blank…
Beacon Corporation issued a 8 percent stock dividend on 35,000 shares of its $7 par common stock. At the time of the dividend, the market value of the stock was $30 per share. Required a. Compute the amount of the stock dividend. b. Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. Complete this question by entering your answers in the tabs below. Required A Required B Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. (Enter any decreases to account balances with a minus sign.)…
Enscoe Enterprises, Incorporated (EEI) has 220,000 shares authorized, 160,000 shares issued, and 40,000 shares of treasury stock. At this point, EEI has $1,100,000 of assets, $260,000 liabilities, $400,000 of common stock, and $440,000 of retained earnings. Further, assume that the market value of EEI's common stock is $9 per share. a. Determine the number of shares of stock that is outstanding b. Determine the book value per share
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 (360,000 shares authorized; 4,000 shares issued), $50 par, $200,000; Paid-In Capital in excess of par— common stock, $40,000; and Retained earnings, $1,600,000. The board of directors declared a 1% stock dividend when the market price of the stock was $63 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. a2. Journalize the entry to record the issuance of the stock certificates. b. Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders'…
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 (420,000 shares authorized ; 4,000 shares issued), $75 par, $300,000; Paid-In Capital in excess of par—common stock, $32,000; and Retained earnings, $2,400,000. The board of directors declared a 1% stock dividend when the market price of the stock was $95 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 6a18bffdc000056_2 fill in the blank 6a18bffdc000056_3 Stock Dividends Distributable fill in the blank 6a18bffdc000056_5 fill in the blank 6a18bffdc000056_6 Paid-In Capital in Excess…
Entries for Stock Dividends Advanced Life Co. is an HMO for businesses in the Albuquerque area. The following account balances appear on the balance sheet of Advanced Life Co.: Common stock (600,000 shares authorized; 400,000 shares issued), $8 par, $3,200,000; Paid-in capital in excess of par-common stock, $800.000; and Retained earnings, $25,600,000. The board of directors declared a 2% stock dividend when the market price of the stock was $19 a share. Advanced Life Co. reported no income or loss for the current year. a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value. If an amount box does not require an entry, leave it blank. Retained Earnings Stock Dividends Distributable Paid-In Capital in Excess of Par-Common Stock a2. Journalize the entry to record the issuance of the stock certificates. If an amount box does not require an entry, leave it blank. Stock Dividends Distributable Common Stock b. Determine the following…
.
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 (800,000 shares authorized; 460,000 shares issued), $4 par, $1,840,000; Paid-in capital in excess of par—common stock, $800,000; and Retained earnings, $31,940,000. The board of directors declared a 2% stock dividend when the market price of the stock was $12 a share. Healthy Life reported no income or loss for the current year. Required: a. Journalize the entries to record (1) the declaration of the dividend, capitalizing an amount equal to market value, and (2) the issuance of the stock certificates. 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. 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…
Hickory Inc. experienced the following stockholders' equity transactions (listed in chronological order) during it's first year of operations. Based on these transactions, calculate the balances that would appear in the stockholders' equity accounts listed below. Formatting: Please round to the nearest dollar and do not use dollar signs (i.e. enter '1,000' rather than '$1,000'). All numbers should be positive. Common Stock, 100,000 shares of $1 par value common stock authorized Preferred Stock, 50,000 shares of $10 par value preferred stock authorized 1 Issued 5,000 common shares at $30 per share 2 Exchanged 4,000 preferred shares for a piece of equipment with a fair value of $49,000. 3 Issued 2,500 common shares at $25 per share 4 Purchased 500 of own common shares on the open market at $24 per share 5 Declared a 30% common stock dividend. Common stock was trading at $23 per share on the date of declaration.…

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