The stockholders equity section of TVX Company on February 4 follows.

Common stock$20 par value, 150,000 shares authorized, 58,000 shares issued and outstanding $ 1,160,000 Paid-in capital in excess of par value, common stock 421,000 Retained earnings 553,000 Total stockholders equity $ 2,134,000 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.

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

! Required information (The following information applies to the questions displayed below.] The stockholders' equity section of TVX Company on February 4 follows. Common stock-$20 par value, 150,000 shares authorized, 58,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 1,160,000 421,000 553,000 $ 2,134,000 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 $41 per share on February 5 before the stock dividend. TVX COMPANY Stockholders' Equity Section of the Balance Sheet February 28 Common stock$20 par value Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 0