CH $13$ #$7$

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The stockholders' equity section of TVX Company on February $4$ follows.

Common stock$-$ $$10$ par value, $150,000$ shares authorized, $60,000$

shares issued and outstanding

Paid$-$in capital in excess of par value, common stock

Retained earnings

Total stockholders' equity

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.

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

Journal entry worksheet

Record the declaration of a $2\%$ stock dividend.

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$[$The following information applies to the questions displayed below.$]$

The stockholders$$ equity section of TVX Company on February $4$ follows.

Common stock$$$$10$ par value, $150,000$ shares authorized, $60,000$ shares issued and outstanding $ $600,000$

Paid$-$in capital in excess of par value, common stock $426,000$

Retained earnings $550,000$

Total stockholders$$ equity $ $1,576,000$

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.