The stockholders\' equity of TVX Company at the beginning of the day on February
ID: 2390824 • Letter: T
Question
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, 67,000 shares issues and outstanding
670,000
Paid-in capital in excess of par value, common stock
525,000
Retained Earnings
675,000
Total Stockholders' Equity
1,870,000
On February 5, the directors declare a 12% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $39 per share on February 5 before the stock dividend. The stock's market value is $35.00 per share on February 28.
1. Prepare entries to record the dividend declaration and its distribution.
2. One stockholder owned 800 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholder's shares immediately before and after the stock dividend of February 5.
3. Compute the total market value of the investor's shares in part 2 as of February 5 and February 28.
Feb 5
Retained Earnings
Common stock dividend distributable
Paid in capital in excess of par value, common stock
Declared 12% stock dividend
Feb 28
Common stock dividend distributable
Common stock
Distributed common stock dividend declared on Feb 5
2.) One stockholder owned 550 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholder’s shares immediately before and after the stock dividend of February 5. (Round your "Book value per share" answers to 3 decimal places.)
3.) Compute the total market value of the investor’s shares in part 2 as of February 5 and February 28.
Common stock -- $10 par value, 150,000 shares authorized, 67,000 shares issues and outstanding
670,000
Paid-in capital in excess of par value, common stock
525,000
Retained Earnings
675,000
Total Stockholders' Equity
1,870,000
Explanation / Answer
2.
Dear Student,
Best effort has been made to give quality and correct answer. But if you find any issues please comment your concern. I will definitely resolve your query.
Date Account Description Debit Credit 5-Feb Retained Earnings(67000*12%*39) $ 313,560 Common stock dividend distributable(67000*12%*10) $ 80,400 Paid in capital in excess of par value, common stock $ 233,160 (Being Stock Dividend Declared) 28-Feb Common stock dividend distributable $ 80,400 Common Stock $ 80,400 (Being Shares issued)Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.