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

Common stock$5 par value, 150,000 shares authorized, 62,000 shares issued and outstanding	$ 310,000
Paid-in capital in excess of par value, common stock	425,000
Retained earnings	548,000
Total stockholders equity	$ 1,283,000

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.

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

Journal entry worksheet

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

Note: Enter debits before credits.