The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows.
Common stock—$10 par value, 150,000 shares
authorized, 58,000 shares issued and outstanding $ 580,000 Paid-in capital in excess of par value, common stock 430,000 Retained earnings 546,000 Total stockholders’ equity $ 1,556,000 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 $31 per share on February 5 before the stock dividend.
Prepare entries to record both the dividend declaration and its distribution.