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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.
Par Value
The face value of a bond or stock as stated by the issuing company, unrelated to its market value. It's a nominal value used for accounting purposes.
Anticipated Future Earnings
Projected profits or income that a company expects to earn in future periods, often used in valuations.
Common Stock
A type of equity security that represents ownership in a corporation, giving holders a share in the company's profits and voting rights.
Par Value
A nominal value assigned to a share of stock or a bond by the issuing company, often used in accounting.
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