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Required information The following information applies to the questions displaye

ID: 2340261 • Letter: R

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 Part 1 of 3 10 points Common stock-$10 par value, 150,0e0 shares authorized, 60,e00 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $600,000 425,000 550,00e $1,575,000 eBook Hint Reterences 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 $33.40 per share on February 28 1. Prepare entries to record both the dividend declaration and its distribution. View transaction list Journal entry worksheet 7 8 9 of 10 Next > ic f Prev

Explanation / Answer

Date

General Journal

Debit

Credit

Feb-05

Retained earnings (60,000 shares*20%*$40)

480,000

Common stock dividend distributable (60,000 shares*20%*$10)

120,000

Paid-in capital in excess of par value, Common stock

360,000

Feb-28

Common stock dividend distributable

120,000

Common stock, $10 par value

120,000

Date

General Journal

Debit

Credit

Feb-05

Retained earnings (60,000 shares*20%*$40)

480,000

Common stock dividend distributable (60,000 shares*20%*$10)

120,000

Paid-in capital in excess of par value, Common stock

360,000

Feb-28

Common stock dividend distributable

120,000

Common stock, $10 par value

120,000

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