please help !!!!

Advanced Life Co. is an HMO for businesses in the Portland area. The following account balances appear on the balance sheet of Advanced Life Co.: Common stock (800,000 shares authorized; 470,000 shares issued), $5 par, $2,350,000; Paid-in capital in excess of parcommon stock, $1,000,000; and Retained earnings, $33,045,000. The board of directors declared a 1% stock dividend when the market price of the stock was $13 a share. Advanced Life Co. reported no income or loss for the current year.

Required:

A.	Journalize the entries to record (1) the declaration of the dividend on December 1, capitalizing an amount equal to market value, and (2) the issuance of the stock certificates on December 31. Refer to the Chart of Accounts for exact wording of account titles.
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.

Journal

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A. Journalize the entries to record (1) the declaration of the dividend on December 1, capitalizing an amount equal to market value, and (2) the issuance of the stock certificates on December 31. Refer to the Chart of Accounts for exact wording of account titles.

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PAGE 10

JOURNAL

Score: 56/63

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5

Points:

10.67 / 12

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Check My Work

Recall that a stock dividend affects only stockholders' equity.

Final Questions

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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
Total retained earnings
Total stockholders' equity

Points:

0 / 3

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Check My Work

Identify the balances of all the equity accounts before the stock dividend. What affect does a stock dividend have on the equity accounts? What account(s) would increase and what account(s) would decrease?

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