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Required information Exercise 11-8 Small stock dividends LO P2 (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-$25 par value, 150,000 shares authorized, 57,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,425,000 426,000 552,000 $ 2,403,000 On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $36 per share on February 5 before the stock dividend. 1. Prepare entries to record both the dividend declaration and its distribution. X Answer is not complete. No Date General Journal Debit Credit 1 Feb 05 Retained earnings 41,040 Common stock dividend distributable 41,040 X 2 Feb 28 41,040 Common dividend payable Paid-in capital in excess of par value, Common stock 41,040 2. Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.) X Answer is complete but not entirely correct. TVX COMPANY Stockholders' Equity Section of the Balance Sheet February 28 Common stock $ Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 58,140 X 438,540 510,690 X 1,007,370 $

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