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

Common stock$20 par value, 150,000 shares authorized, 62,000 shares issued and outstanding$ 1,240,000Paid-in capital in excess of par value, common stock430,000Retained earnings553,000Total stockholders equity$ 2,223,000

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

Exercise 13-10 (Algo) Part 2

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