Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear
Question:
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 earnings, and
(3) Total stockholders' equity?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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