The stockholders’ equity section of TVX Company on February 4 follows. Common stock—$25 par value, 150,000 shares authorized, 63,000 shares issued and outstanding $ 1,575,000 Paid-in capital in excess of par value, common stock 428,000 Retained earnings 545,000 Total stockholders’ equity $ 2,548,000 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 $36 per share on February 5 before the stock dividend. Prepare entries to record both the dividend declaration and its distribution.
The stockholders’ equity section of TVX Company on February 4 follows. Common stock—$25 par value, 150,000 shares authorized, 63,000 shares issued and outstanding $ 1,575,000 Paid-in capital in excess of par value, common stock 428,000 Retained earnings 545,000 Total stockholders’ equity $ 2,548,000 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 $36 per share on February 5 before the stock dividend. Prepare entries to record both the dividend declaration and its distribution.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The
Common stock—$25 par value, 150,000 shares authorized, 63,000 shares issued and outstanding | $ 1,575,000 |
---|---|
Paid-in capital in excess of par value, common stock | 428,000 |
545,000 | |
Total stockholders’ equity | $ 2,548,000 |
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 $36 per share on February 5 before the stock dividend.
Prepare entries to record both the dividend declaration and its distribution.
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