Question

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, 62,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 620,000 423,000 552,000 $1,595,000 Total stockholders' equity 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 $31 per share on February 5 before the stock dividend.
the picture below is a different part! not associated with the above. Everything above this is all together.

Answer 1

1a) Journal entry

Date	account and explanation	Debit	Credit
Feb 05	Retained earnings (62000*5%*31)	96100
	Common Stock dividend distributable		31000
	Paid in capital in excess of par value-Common Stock		65100
Feb 28	Common Stock dividend distributable	31000
	Common Stock		31000

1b) Stockholder's equity section of balance sheet

Feb 28

Common Stock (620000+31000)	651000
Paid in capital in excess of par value-Common Stock (423000+65100)	488100
Retained earnings (552000-96100)	455900
Total Stockholder's equity	1595000

2) DRACO CORPORATION

Stockholder's equity section of balance sheet

December 31

Common Stock- $2 par value	14400
Paid in capital in excess of par value, Common Stock	345600
Paid in capital in excess of par value, Preferred stock	18000
Preferred stock-$10 par value	81000
Retained earnings	51000
Less: Cost of treasury stock	-22320
Total Stockholder's equity	487680