Answer:
TVX Company
Stockholders Equity Section of the Balance Sheet, February 28
Common stock $632,400
Paid in capital in excess of par value, Common stock $449,040
Retained earnings $513,560
Total Stockholders Equity <u>$1,595,000</u>
<u>Workings</u>
Common Stock
= Common Stock + Dividends Declared
= 620,000 + ( 2% * 62,000 shares * $10 par value)
= 620,000 + 12,400
= $632,400
Paid in capital in excess of par value, Common stock
Dividends were declared based on current market value of $31 not par value of $10 so the differnce will be catered for here.
= Balance + Dividends Declared
= 423,000 + (2% * 62,000 * $21 which is differnce between par value and market value)
= 423,000 + 26,040
= $449,040
Retained earnings
= Retained Earnings - Dividends distributed
= 552,000 - (2% * 62,000 * $31)
= 552,000 - $38,440
= $513,560
