Advanced Life Co. is an HMO for businesses in the Albuquerque area. The following account...
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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 (430,000 shares authorized; 7,000 shares issued), $100 par, $700,000; Paid-in capital in excess of par common stock, $140,000; and Retained earnings, $8,400,000. The board of directors declared a 1% stock dividend when the market price of the stock was $130 a share. Advanced Life Co. reported no income or loss for the current year.
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a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value. If an amount box does not require an entry, leave it blank.
blankCashPaid-In Capital in Excess of Par-Common StockRetained EarningsStock DividendsStock Dividends Distributable- Select -- Select -CashRetained EarningsStock DividendsStock Dividends DistributableTreasury Stock- Select -- Select -CashCommon StockPaid-In Capital in Excess of Par-Common StockRetained EarningsStock Dividends- Select -- Select -
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a2. Journalize the entry to record the issuance of the stock certificates. If an amount box does not require an entry, leave it blank.
blankCommon StockPaid-In Capital in Excess of Par-Common StockRetained EarningsStock DividendsStock Dividends Distributable- Select -- Select -Common StockPaid-In Capital in Excess of Par-Common StockRetained EarningsStock DividendsStock Dividends Distributable- Select -- Select -
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b. Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders' equity.
Total paid-in capital$fill in the blank bb9b9f04bf9e03a_1Total retained earnings$fill in the blank bb9b9f04bf9e03a_2Total stockholders' equity$fill in the blank bb9b9f04bf9e03a_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$fill in the blank bb9b9f04bf9e03a_4Total retained earnings$fill in the blank bb9b9f04bf9e03a_5Total stockholders' equity$fill in the blank bb9b9f04bf9e03a_6
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