1. Prepare entries to record both the dividend declaration and its distribution.

2. Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)

1. Prepare entries to record both the dividend declaration and its distribution.

General Journal:

• Building
• Cash
• Common dividend payable
• Common stock dividend distributable
• Common stock, $0.50 par value
• Common stock, $1 par value
• Common stock, $1 stated value
• Common stock, $10 par value
• Common stock, $8 stated value
• Common stock, No-Par value
• Contributed capital, Treasury stock
• Income summary
• Inventory
• Land
• Machinery
• Note payable
• Organization expenses
• Paid-in capital in excess of par value, Common stock
• Paid-in capital in excess of par value, Preferred stock
• Paid-in capital in excess of stated value, Common stock
• Preferred stock, $50 par value
• Retained earnings

2. Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)

• Common stock
• Paid-in capital in excess of par value, common stock
• Paid-in capital in excess of par value, preferred stock
• Preferred stock
• Retained earnings
• Treasury stock

Required information {The following information applies to the questions displayed below.] The stockholders' equity of TVX Company at the beginning of the day on February 5 follows. Common stock-$10 par value, 150,000 shares authorized, 64,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 640,000 425,000 547,000 $1,612,000 On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $36 per share on February 5 before the stock dividend. 1. Prepare entries to record both the dividend declaration and its distribution. View transaction list Journal entry worksheet