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 6 follows.

Common stock$20 par value, 150,000 shares authorized, 63,000 shares issued and outstanding	$	1,260,000
Paid-in capital in excess of par value, common stock		423,000
Retained earnings		553,000
Total stockholders equity	$	2,236,000

On February 6, 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 6 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.
• Record the distribution of a 2% stock dividend.