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The stockholders equity section of TVX Company on February 4 follows.! Required information [ The following information applies to the questions displayed below. ] The

The stockholders equity section of TVX Company on February 4 follows.!
Required information
[The following information applies to the questions displayed below.]
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 stocks 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.
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