Reference no: EM133025757
Question - The stockholders' equity section of TVX Company on February 4 follows.
Common stock-$10 par value, 150,000 shares authorized, 60,000 shares issued and outstanding $600,000
Paid-in capital in excess of par value, common stock 425,000
Retained earnings 550,000
Total stockholders' 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.
Required - Prepare entries to record both the dividend declaration and its distribution.
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