he stockholders’ equity of TVX Company at the beginning of the day on February 5

Question

he stockholders’ equity of TVX Company at the beginning of the day on February 5 follows: Common stock—$5 par value, 150,000 shares authorized, 71,000 shares issued and outstanding $ 355,000 Paid-in capital in excess of par value, common stock 525,000 Retained earnings 675,000 Total stockholders’ equity $ 1,555,000 On February 5, the directors declare a 16% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $35 per share on February 5 before the stock dividend. The stock’s market value is $30 per share on February 28. 1. Prepare entries to record both the dividend declaration and its distribution.

Explanation / Answer

Journal Entries: Debit $ Credit $ 5-Feb Stock Dividend 397600 11360*35 Common Stock distributable 56800 11360*5 Additional capital paid in - CS 340800 11360*30 (Being declared stock dividend @16% of 71000 shares at MV 35) 15-Feb No entry 28-Feb Common Stock distributable 56800 Common Stock   56800 (being the common stock distributed )

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.