The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows. Common stock—$10 par value, 150,000 shares authorized, 63,000 shares issued and outstanding $ 630,000 Paid-in capital in excess of par value, common stock 430,000 Retained earnings 550,000 Total stockholders’ equity $ 1,610,000 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 $41 per share on February 5 before the stock dividend. 1. Prepare entries to record both the dividend declaration and its distribution.
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows. Common stock—$10 par value, 150,000 shares authorized, 63,000 shares issued and outstanding $ 630,000 Paid-in capital in excess of par value, common stock 430,000 Retained earnings 550,000 Total stockholders’ equity $ 1,610,000 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 $41 per share on February 5 before the stock dividend. 1. Prepare entries to record both the dividend declaration and its distribution.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 5SEB: STOCKHOLDERS EQUITY SECTION After closing its books on December 31, Mel Brothers stockholders equity...
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The
| Common stock—$10 par value, 150,000 shares authorized, 63,000 shares issued and outstanding |
$ | 630,000 | |
| Paid-in capital in excess of par value, common stock | 430,000 | ||
| 550,000 | |||
| Total stockholders’ equity | $ | 1,610,000 | |
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 $41 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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