The following information applies to the questions displayed below The stockhold

Question

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-$15 par value. 150,000 shares authorized, 55.000 shares issued and outstanding Pald-In capital In excess of par value, common stock Retalned earnings Total stockholders' equity $ 825,000 525,000 675,000 $ 2.025,000 On ebruary 5, the directors declare a 12% stock dividend distributable on dividend. The stock's market value is $35 per share on February 28 ebruary 28 to the February 5 stockholders of eco The stock's man et alues per nare on February 5 before the stock

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Feb 5 Stock dividend (55000*12%*39) 257400 Common Stock dividend distributable 99000 Paid in capital in excess of par value-Common Stock 158400 (To record declaration of stock dividend) Feb 15 No entry Feb 28 Common Stock dividend distributable 99000 Common Stock 99000 (To record dividend distributed)

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