Required information [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, 56,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,400,000 424,000 554,000 $2,378,000 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. Answer is complete but not entirely correct. General Journal Debit Credit 40,320 No 1 Date Feb 05 Retained earnings Common stock dividend distributable Paid-in capital in excess of par value, Common stock 2 Feb 28 Common stock dividend distributable Common stock, $25 par value 12,320x 28,000 28,000 28,000