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 $ 600,000 425,000 550,000 $ 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. 1. Prepare entries to record both the dividend declaration and its distribution.
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 $ 600,000 425,000 550,000 $ 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. 1. 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 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 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.
1. Prepare entries to record both the dividend declaration and its distribution.
View transaction list
Journal entry worksheet
<
2
$ 600,000
425,000
550,000
$ 1,575,000
Record the declaration of a 20% stock dividend.
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Transcribed Image Text:0
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 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.
1. Prepare entries to record both the dividend declaration and its distribution.
View transaction list
Journal entry worksheet
<
2
$ 600,000
425,000
550,000
$ 1,575,000
Record the declaration of a 20% stock dividend.
>
Transcribed Image Text:Required information
1. Prepare entries to record both the dividend declaration and its distribution.
View transaction list
Journal entry worksheet
< 1
Record the declaration of a 20% stock dividend.
Note: Enter debits before credits.
Date
February
05
2
Record entry
View transaction list
<
Journal entry worksheet
2
Date
February
28
General Journal
Record the distribution of a 20% stock dividend.
Note: Enter debits before credits.
Clear entry
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Debit
>
Credit
View general journal
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