please prepare entries for february 5 and february 28 Required information [The

Question

please prepare entries for february 5 and february 28

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-$20 par value, 150,000 shares authorized, 54,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,080,000 525,000 675,000 $2,280,000 On February 5, the directors declare a 14% 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 The stock's market value is $35 per share on February 28.

Explanation / Answer

Date General Journal Debit Credit Feb, 5 Retained Earnings 30240000 (54000*14*40) Common Stock dividend distributable 15120000 (54000*14*20) Paid in capital in excess of par- Common stock 15120000 (To record declaration of dividend) Feb, 28 Common stock dividend distributable 15120000 Common Stock    15120000 (To record distribution of dividend)

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