Question
The stockholders equity of TVX Company at the beginning of the day on February 5 follows: Common stock$5 par value, 150,000 shares authorized, 60,000 shares
The stockholders equity of TVX Company at the beginning of the day on February 5 follows: Common stock$5 par value, 150,000 shares authorized, 60,000 shares issued and outstanding $ 300,000 Paid-in capital in excess of par value, common stock 525,000 Retained earnings 675,000 Total stockholders equity $ 1,500,000 On February 5, the directors declare a 12% stock dividend distributable on February 28 to the February 15 stockholders of record. The stocks market value is $34 per share on February 5 before the stock dividend. The stocks market value is $30 per share on February 28.
Journal Entry Worksheet
Record the declaration of 12% stock dividend.
Record the distribution of 12% stock dividend.
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*Enter debits before credits
2. One stockholder owned 500 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholders shares immediately before and after the stock dividend of February 5. (Round your "Book value per share" answers to 2 decimal places. Round "Total book value of shares" to the nearest whole dollar.)
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3. Compute the total market value of the investors shares in part 2 as of February 5 and February 28.
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