The stockholders equity of TVX Company at the beginning of the day on February 5 follows.

Common stock$20 par value, 150,000 shares authorized, 60,000 shares issued and outstanding	$	1,200,000
Paid-in capital in excess of par value, common stock		430,000
Retained earnings		553,000
Total stockholders equity	$	2,183,000

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 $41 per share on February 5 before the stock dividend.

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

Journal entry worksheet

• Record the distribution of a 2% stock dividend.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Feb 28

2-

The stockholders equity of TVX Company at the beginning of the day on February 5 follows.

Common stock$20 par value, 150,000 shares authorized, 60,000 shares issued and outstanding	$	1,200,000
Paid-in capital in excess of par value, common stock		430,000
Retained earnings		553,000
Total stockholders equity	$	2,183,000

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 $41 per share on February 5 before the stock dividend.

2. Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)