Exercise $11-10$ Small stock dividend $$ P$2$

The stockholders' equity section of TVX Company on February $4$ follows.

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.

Prepare entries to record both the dividend declaration and its distribution.

Prepare the stockholders' equity section after the stock dividend is distributed. $($Assume no other changes to equity.$)$