Question: required information exercise 136 stock dividends and per share book...
Exercise 13-6 Stock dividends and per share book values LO P2
[The following information applies to the questions
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows:
|Common stock—$15 par value, 150,000 shares
authorized, 56,000 shares issued and outstanding
|Paid-in capital in excess of par value, common stock||525,000|
|Total stockholders’ equity||$||2,040,000|
On February 5, the directors declare a 10% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $33 per share on February 5 before the stock dividend. The stock’s market value is $30 per share on February 28.
Exercise 13-6 Part 1
1. Prepare entries to record both the dividend
declaration and its distribution.
2. One stockholder owned 950 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.