13 Homework Problems Required information The following info

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 9

Solution

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)