On October 10, the Board of Directors of Pattern Corporation

question 194

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:

Collection Period

The average number of days it takes for a business to receive payments owed by its customers, indicating the efficiency of a company's credit and collection policies.

Sales

The total amount of revenue generated by a company from the sale of goods or services before any costs or expenses are deducted.

Accounts Receivable Balance

The entire sum owed by customers to a company for the consumption of goods or services for which payment has not been made.

Cost of Goods Sold

The immediate expenses linked to the creation of products that a company sells.