Answered: Required information Journal entry…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 2MC

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Question

The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows:

Common stock—$20 par value, 150,000 shares authorized, 58,000 shares issued and outstanding	$	1,160,000
Paid-in capital in excess of par value, common stock		525,000
Retained earnings		675,000
Total stockholders’ equity	$	2,360,000

On February 5, the directors declare a 14% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $40 per share on February 5 before the stock dividend. The stock’s market value is $35 per share on February 28.

Required information
Journal entry worksheet
Record the declaration of 14% stock dividend.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Feb 05
Record entry
Clear entry
View general journal

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