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

Common stock$20 par value, 150,000 shares authorized, 63,000 shares issued and outstanding	$ 1,260,000
Paid-in capital in excess of par value, common stock	428,000
Retained earnings	554,000
Total stockholders equity	$ 2,242,000

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 $36 per share on February 5 before the stock dividend.

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

1. Record the declaration of a 2% stock dividend.

2. Record the distribution of a 2% stock dividend.