Question

[The following information applies to the questions displayed below.] 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, 65,000 shares issued and outstanding $ 975,000 Paid-in capital in excess of par value, common stock 525,000 Retained earnings 675,000 Total stockholders’ equity $ 2,175,000 On February 5, the directors declare a 12% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $39 per share on February 5 before the stock dividend. The stock’s market value is $35 per share on February 28. 2. One stockholder owned 800 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" answer

	before	after
book value per share
total book value of shares

Answer 1

05-Feb	Retained earnings	304200
	Common stock dividend distributable		117000
	Paid in capital in excess of par value-common stock		187200
	65000*12% = 7800	7800
	Retained earnings 7800*39	304200
	Common Stock Dividend Distributable 7800*15	117000
	Paid-In Capital in Excess of Par Value, Common Stock 304200-117000	187200
28-Feb	Common stock dividend distributable	117000
	Common stock 15 par value		117000
		Before	After
	Book Value Per Share
	total book value of shares
		Before	After
	Total stockholders’ equity	2175000	2175000
	Issued and distributable shares	65000	72800
	Book value per share	33.46154	29.87637
	Shares owned	800	896
	Total book value of shares	26769.23	26769.23
	800*112%= 896