Question

Senior Life Co. is an HMO for businesses in the Portland area. The following account balances...

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 (410,000 shares authorized; 7,000 shares issued), $125 A dollar amount assigned to each share of stock.par, $875,000; Capital contributed to a corporation by the stockholders and others.Paid-In Capital in excess of par— common stock, $175,000; and Net income retained in a corporation that is reported as part of stockholders' equity.Retained earnings, $8,750,000. The board of directors declared a 1% stock dividend when the market price of the Shares of ownership of a corporation.stock was $165 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.

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

Feedback

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

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

Feedback

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 $

Homework Answers

Answer #1
a1
Stock Dividends 11550 =7000*165*1%
      Stock Dividends Distributable 8750 =7000*125*1%
      Paid-In Capital in Excess of Par-Common Stock 2800
a2
Stock Dividends Distributable 8750
     Common Stock 8750
b
Total paid-in capital 1050000 =875000+175000
Total retained earnings 8750000
Total stockholders' equity 9800000
c
Total paid-in capital 1061550 =1050000+11550
Total retained earnings 8738450 =8750000-11550
Total stockholders' equity 9800000
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Senior Life Co. is an HMO for businesses in the Portland area. The following account balances...
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 (250,000 shares authorized; 7,000 shares issued), $75 par, $525,000; Paid-In Capital in excess of par— common stock, $105,000; and Retained earnings, $5,775,000. The board of directors declared a 1% stock dividend when the market price of the stock was $92 a share. Senior Life Co. reported no income or loss for the current...
Senior Life Co. is an HMO for businesses in the Portland area. The following account balances...
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 (240,000 shares authorized; 6,000 shares issued), $50 par, $300,000; Paid-In Capital in excess of par— common stock, $30,000; and Retained earnings, $3,000,000. The board of directors declared a 2% stock dividend when the market price of the stock was $62 a share. Senior Life Co. reported no income or loss for the current...
Senior Life Co. is an HMO for businesses in the Portland area. The following account balances...
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 (340,000 shares authorized; 3,000 shares issued), $50 par, $150,000; Paid-In Capital in excess of par— common stock, $30,000; and Retained earnings, $1,200,000. 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...
Entries for Stock Dividends Senior Life Co. is an HMO for businesses in the Portland area....
Entries for Stock Dividends 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 (440,000 shares authorized; 4,000 shares issued), $75 par, $300,000; Paid-In Capital in excess of par— common stock, $32,000; and Retained earnings, $2,700,000. The board of directors declared a 1% stock dividend when the market price of the stock was $102 a share. Senior Life Co. reported no income or...
Entries for Stock Dividends Senior Life Co. is an HMO for businesses in the Portland area....
Entries for Stock Dividends 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 (440,000 shares authorized; 6,000 shares issued), $50 par, $300,000; Paid-In Capital in excess of par— common stock, $30,000; and Retained earnings, $3,600,000. The board of directors declared a 2% stock dividend when the market price of the stock was $61 a share. Senior Life Co. reported no income or...
Senior Life Co. is an HMO for businesses in the Portland area. The following account balances...
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 (900,000 shares authorized; 460,000 shares issued), $5 par, $2,300,000; Paid-in capital in excess of par—common stock, $900,000; and Retained earnings, $33,595,000. The board of directors declared a 1% stock dividend when the market price of the stock was $13 a share. Life Co. reported no income or loss for the current year. Required:...
Senior Life Co. is an HMO for businesses in the Portland area. The following account balances...
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 (800,000 shares authorized; 460,000 shares issued), $5 par, $2,300,000; Paid-in capital in excess of par—common stock, $850,000; and Retained earnings, $34,950,000. The board of directors declared a 2% stock dividend when the market price of the stock was $15 a share. Senior Life Co. reported no income or loss for the current year....
Entries for Stock Dividends Senior Life Co. is an HMO for businesses in the Portland area....
Entries for Stock Dividends 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 (340,000 shares authorized; 3,000 shares issued), $50 par, $150,000; Paid-In Capital in excess of par— common stock, $30,000; and Retained earnings, $1,800,000. The board of directors declared a 1% stock dividend when the market price of the stock was $69 a share. Senior Life Co. reported no income or...
Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances...
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 ; 6,000 shares issued), $25 par, $150,000; Paid-In Capital in excess of par— common stock, $30,000; and Retained earnings, $1,650,000. The board of directors declared a 2% stock dividend when the market price of the stock was $32 a share. Healthy Life reported no income or loss for the current year. If an...
Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances...
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 (410,000 shares authorized ; 4,000 shares issued), $25 par, $100,000; Paid-In Capital in excess of par— common stock, $12,000; and Retained earnings, $1,100,000. The board of directors declared a 2% stock dividend when the market price of the stock was $31 a share. Healthy Life reported no income or loss for the current year. If an...