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On October 10, the board of directors of Pitcher Corporation declared a 10% stock dividend. On October 10, the company had 10,000 shares of $1 par common stock issued and outstanding with a market price of $15 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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The solution explains the entries needed for the declaration and distribution of the stock dividend.

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Number of shares to be issued ar 10,000 X 10% = 1,000. The amount to be transferred from retained earnings would be 1,000 X $15 = $15,000. The par value is ...

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