tMaindoinvoker ms eBook Entries for Stock Dividends Healthy

tMaindo?invoker- ms eBook Entries for Stock Dividends Healthy Life Co. is an HMO for businesses in the Fresno area. earnings, $89,550,000. The board of directors dedared a 5% stock dividend when the market price of the stock was sin share. Healthy ue re Show Me How Calculator The following account balances appear on Healthy ule\'s balance sh : Common stock ,000 shares authorized; 2,200,000 shares issued), $15 par, $3,000,000; Paid-in capital in excess of par-common stock. 3,00,000; and Retained ted no income or loss for the current year For a compound transaction, if an amount bax 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. Stock Dividends 1.980000 Stock Dividends Distributable 1.650.000 Paid-In Capital in Excess of Par-Common Stock 330000 a2. Journalize the entry to record the issuance of the stock certificates Stock Dividends Distributabl16s0.000 Common Stock 1.650.000 Preiou Next Check My Work 822 PM @rP^de

Solution

c. after the stock dividend is declared :

new paid in capital = existing paid in capital + stock dividends

=>42,000,000 + 1,980,000 =>43,980,000

new retained earinings = existing retained earnings - stock dividends

=>89,550,000 - 1,980,000

=>87,570,000.

Total stock holders equity does not change due to stock dividends.

total paid in capital	43,980,000
total retained earnings	87,570,000
total stock holders equity	131,550,000