The stockholders’ equity section of TVX Company on February 4 follows.Common stock—$25 par value, 150,000 shares authorized, 63,000 shares issued and outstanding$ 1,575,000Paid-in capital in excess of par value, common stock428,000Retained earnings545,000Total stockholders’ equity$ 2,548,000On 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.

Step 1: Calculate the Number of Shares for the Stock DividendGiven:Total Shares Issued and…

Answered: The stockholders’ equity section of TVX…

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:...

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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.

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