The stockholders’ equity section of TVX Company on February 4 follows.
Common stock—$20 par value, 150,000 shares authorized, 59,000 shares issued and outstanding $ 1,180,000
Paid-in capital in excess of par value, common stock 426,000
Retained earnings 545,000
Total stockholders’ equity $ 2,151,000
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 $41 per share on February 5 before the stock dividend.
Journal entry worksheet:
Record the declaration of a 2% stock dividend.