On October 10, the Board of Directors of Pattern Corporation

question 64

Essay

On October 10, the board of directors of Pattern Corporation declared a 15% stock dividend. On October 10, the company had 10,000 shares of $1 par common stock issued and outstanding with a market price of $16 per share. The stock dividend will be distributed on October 31 to shareholders of record on October 25. Journalize the entries needed for the declaration and distribution of the stock dividend.

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Definitions:

Auditor's Opinion

A statement issued by an independent auditor reflecting their judgement about the accuracy of a company's financial statements.

Audit

The examination and verification of a company's financial and accounting records and supporting documents by a professional, such as a Certified Public Accountant, to ensure accuracy and compliance with accounting standards and regulations.

SEC Statement

Financial documentation that companies are required to submit to the U.S. Securities and Exchange Commission (SEC) detailing their financial performance.

Corporate Annual Reports

Official publications by corporations that summarize the company's activities, financial performance, and strategy over the past year.