Required information

Skip to question

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

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

Common stock$25 par value, 150,000 shares authorized, 62,000 shares issued and outstanding	$ 1,550,000
Paid-in capital in excess of par value, common stock	421,000
Retained earnings	546,000
Total stockholders equity	$ 2,517,000

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.

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

1)

Journal entry worksheet

Record the declaration of a 2% stock dividend

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
February 05

2)

Journal entry worksheet

Record the declaration of a 2% stock dividend

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
February 28