Required information Exercise 11-8 Small stock dividends LO P2 (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, 62,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 620,000 422,000 552,000 $1,594,000 On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stocks market value is $31 per share on February 5 before the stock dividend. xercise 11-8 Part 1 Prepare entries to record both the dividend declaration and its distribution. X Answer is not complete. No Date General Journal Debit Credit 1 Feb 05 Retained earnings 38,440 Common stock dividend distributable Paid-in capital in excess of par value, Common stock 2 Feb 28 Common stock dividend distributable Common stock, $10 par value Required information Exercise 11-8 Small stock dividends LO P2 [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, 62,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 620,000 422,000 552,000 $1,594,000 On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stocks market value is $31 per share on February 5 before the stock dividend. Exercise 11-8 Part 2 2. Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.) Answer is complete but not entirely correct. TVX COMPANY Stockholders' Equity Section of the Balance Sheet February 28 Common stock S 15,000 X 422,000 X Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 552,000 X 989,000