13 Homework Problems Required information The following information applies to t
ID: 2605160 • Letter: 1
Question
13 Homework Problems 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: ot 3 Conmon stock-$10 par value, 150,000 shares 60,000 shares issued and outatanding $ 600,0D 425,000 authorized, Pald-in capital in excess of par value, conoon stoek Retained earmings total stockhoiders equity 1.575,000 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 before the stock dividend. The stock's market value is $33.40 per share on February 28 pences t Prepare entries to record both the dividend decleration and its distribution. ournal entry worksheet Recard the dediaration of Prev MacBook Air 8 9Explanation / Answer
Date
Account titles and explanation
Debit
Credit
February 5
Retained earnings (60,000 shares*20%*$40)
$ 480,000.00
Stock dividend distributable
$ 480,000.00
(To record declaration of stock dividend)
February 28
Stock dividend distributable
$ 480,000.00
Common stock (60,000 shares*20%*$10)
$ 120,000.00
Additional paid in capital - Common stock
$ 360,000.00
(To record issue of declared dividend)
Date
Account titles and explanation
Debit
Credit
February 5
Retained earnings (60,000 shares*20%*$40)
$ 480,000.00
Stock dividend distributable
$ 480,000.00
(To record declaration of stock dividend)
February 28
Stock dividend distributable
$ 480,000.00
Common stock (60,000 shares*20%*$10)
$ 120,000.00
Additional paid in capital - Common stock
$ 360,000.00
(To record issue of declared dividend)
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