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, 60, 000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 600,000 425,000 550,000 Total stockholders' equity $1,575,000 On February 5, the directors declare a 20% 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. repare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)
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, 60, 000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 600,000 425,000 550,000 Total stockholders' equity $1,575,000 On February 5, the directors declare a 20% 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. repare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
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, 60,000 shares issued and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
600,000
425,000
550,000
Total stockholders' equity
$1,575,000
On February 5, the directors declare a 20% stock dividend distributable on February 28 to the February 15 stockholders of
record. The stock's market value is $40 per share on February 5 before the stock dividend.
2. Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)
Answer is complete but not entirely correct.
TVX COMPANY
Stockholders' Equity Section of the Balance Sheet
February 28
600,000 X
425,000 X
Common stock
Paid-in capital in excess of par value, common stock
Retained earnings
430,000 x
Total stockholders' equity
2$
1,455,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff06b382e-0be1-481d-8f6a-734715ea7f47%2F1855bae1-fd87-4585-aa92-2ed7e5e77a03%2Fylvrupq_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
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, 60,000 shares issued and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
600,000
425,000
550,000
Total stockholders' equity
$1,575,000
On February 5, the directors declare a 20% stock dividend distributable on February 28 to the February 15 stockholders of
record. The stock's market value is $40 per share on February 5 before the stock dividend.
2. Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)
Answer is complete but not entirely correct.
TVX COMPANY
Stockholders' Equity Section of the Balance Sheet
February 28
600,000 X
425,000 X
Common stock
Paid-in capital in excess of par value, common stock
Retained earnings
430,000 x
Total stockholders' equity
2$
1,455,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning