Question

1. 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.: The stock outstanding when a corporation has issued only one class of stock.Common stock (330,000 shares authorized; 5,000 shares issued), $125 A dollar amount assigned to each share of stock.par, $625,000; Capital contributed to a corporation by the stockholders and others.Paid-In Capital in excess of par— common stock, $125,000; and Net income retained in a corporation that is reported as part of stockholders' equity.Retained earnings, $7,500,000. The board of directors declared a 1% stock dividend when the market price of the Shares of ownership of a corporation.stock was $159 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 Distributions of a corporation's earnings to stockholders.dividend, capitalizing an amount equal to market value.

   	Cash No Entry Required Paid-In Capital in Excess of Par-Common Stock Stock Dividends Distributable Stock Dividends
   	Cash No Entry Required Stock Dividends Distributable Stock Dividends Treasury Common Stock
   	Cash Common Stock No Entry Required Paid-In Capital in Excess of Par-Common Stock Stock Dividends

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

   	Common Stock No Entry Required Paid-In Capital in Excess of Par-Common Stock Stock Dividends Stock Dividends Distributable
   	Common Stock No Entry Required Paid-In Capital in Excess of Par-Common Stock Stock Dividends Distributable Stock Dividends

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   b. Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total The owners' equity in a corporation.stockholders' equity.

   Total paid-in capital	$
   Total retained earnings	$
   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 earnings, and (3) total stockholders' equity.

   Total paid-in capital	$
   Total retained earnings	$
   Total stockholders' equity	$

Answer 1

a1
Stock Dividends	7950		=5000*1%*159
Stock Dividends Distributable		6250	=5000*1%*125
Paid-In Capital in Excess of Par-Common Stock		1700
a2
Stock Dividends Distributable	6250
Common Stock		6250
b
Total paid-in capital	750000		=625000+125000
Total retained earnings	7500000
Total stockholders' equity	8250000
c
Total paid-in capital	757950		=625000+125000+7950
Total retained earnings	7492050		=7500000-7950
Total stockholders' equity	8250000