Answer:
Feb 05
Dr Retained earnings $46,080
Cr Common stock dividend distributable $25,600
Cr Paid-in capital in excess of par value, Common stock $20,480
Journal entries Feb 28
Dr Common stock dividend
distributable$25,600
Cr Common stock, $20 par value $25,600
Step-by-step explanation:
TVX Company
Journal entries
Feb 05
Dr Retained earnings $46,080
Cr Common stock dividend distributable $25,600
Cr Paid-in capital in excess of par value, Common stock $20,480
Journal entries Feb 28
Dr Common stock dividend
distributable$25,600
Cr Common stock, $20 par value $25,600
Feb. 5
Shares to be issued: 64,000 shares × 2% = 1,280 shares
Retained earnings: (1,280 shares × $36) = $46,080
Common stock dividend distributable: 1,280 shares × $20 per share = $25,600