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

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

Common stock$-$$$10$ par value, $150,000$ shares authorized, $60,000$

shares issued and outstanding

Paid$-$in capital in excess of par value, common stock

Retained earnings

Total stockholders' equity

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 $$31$ per share on February $5$ before the stock

dividend.

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

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

Answer is complete but not entirely correct.

TVX COMPANY

Stockholders' Equity Section of the Balance Sheet

Common stock$$$$10$ par value, $150,000$ shares authorized, $60,000$ shares issued and outstanding $ $600,000$

Paid$-$in capital in excess of par value, common stock $423,000$

Retained earnings $554,000$

Total stockholders$$ equity $ $1,577,000$

On February $5,$ the directors declare a $2\%$ stock dividend distributable on February $28$ to the February $15$ stockholders of record. The stock$$s market value is $$31$ per share on February $5$ before the stock dividend.

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