Reference no: EM132425601

Exercise - Small Stock Dividends

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, 56,000 shares issued and outstanding - $560,000

Paid-in capital in excess of par value, common stock - 423,000

Retained earnings - 547,000

Total stockholders' equity - $1,530,000

On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $36 per share on February 5 before the stock dividend.

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