[The following information applies to the questions displayed below.] The stockholders equity of TVX Company at the
Question:
[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$15 par value, 150,000 shares authorized, 71,000 shares issued and outstanding | $ | 1,065,000 |
Paid-in capital in excess of par value, common stock | 525,000 | |
Retained earnings | 675,000 | |
Total stockholders equity | $ | 2,265,000 |
On February 5, the directors declare a 14% stock dividend distributable on February 28 to the February 15 stockholders of record. The stocks market value is $40 per share on February 5 before the stock dividend. The stocks market value is $35 per share on February 28. |
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1. | Prepare entries to record both the dividend declaration and its distribution.
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