Landess Corporation Currently Has 120,000 Shares Outstanding of $1 Par

question 120

Essay

Landess Corporation currently has 120,000 shares outstanding of $1 par value common stock. The stock was originally issued for $12 per share. On March 15, the board of directors declares a 10% stock dividend when the stock is selling for $16 per share. Prepare the journal entry to record the stock dividend.

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Definitions:

Direct Labor Hours

Direct Labor Hours are the total time workers who are directly involved in the manufacturing process spend on producing goods.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs.

Work in Process

Goods in the manufacturing process that are not yet completed, representing a portion of inventory that is between raw materials and finished goods.

Controlling Account

An account in the general ledger that summarizes and controls the total of subsidiary ledger entries, such as accounts receivable or accounts payable.