Question: Exercise 13-10 Small stock dividend P2 The stockholders equity section of TVX Company on February 4 follows. On February 5, the directors declare a 20%

Exercise 13-10

Small stock dividend P2

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 stocks market value is $40 per share on February 5 before the stock dividend.

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

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

Can you please explain this to me as you work it out so I understand how to do it. Thank you.

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