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LESSON 14-1

LESSON 14-1. Distributing Corporate Earnings to Stockholders. STOCKHOLDERS’ EQUITY ACCOUNTS USED BY A CORPORATION. page 405. (3000) STOCKHOLDERS’ EQUITY 3110 Capital Stock 3120 Retained Earnings 3130 Dividends 3140 Income Summary. Chapter 14-1 vocabulary.

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LESSON 14-1

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  1. LESSON 14-1 Distributing Corporate Earnings to Stockholders

  2. STOCKHOLDERS’ EQUITY ACCOUNTS USED BY A CORPORATION page 405 (3000) STOCKHOLDERS’ EQUITY 3110 Capital Stock 3120 Retained Earnings 3130 Dividends 3140 Income Summary LESSON 14-1

  3. Chapter 14-1 vocabulary • Retained Earnings-Amount earned by a corporation and not yet distributed to the stockholders • Share of stock—Each unit of ownership in a corporation • Stockholder—an owner of one or more shares of a corporation • Dividends-Earnings distributed to stockholders • Board of directors-Group of persons elected by the stockholders to manage a corporation • Declaring a dividend-Action by the board to distribute corporate earnings to stockholders • Declared on one date and payed on another. • Dividends become a payable until payed out. LESSON 14-1

  4. DECLARING A DIVIDEND page 406 December 15. Hobby Shack’s board of directors declared a quarterly dividend of $2.00 per share; capital stock issued is 2,500 shares; total dividend, $5,000.00. Date of payment is January 15. Memorandum No. 79. 2 4 3 1 5 6 1. Write the date. 4. Write the debit amount. 2. Write the title of the account debited. 5. Write the title of the account credited. 3. Write the memorandum number. 6. Write the credit amount. LESSON 14-1

  5. PAYING A DIVIDEND page 407 January 15. Paid cash for quarterly dividend declared December 15, $5,000.00. Check No. 379. 1 2 3 4 5 1. Write the date. 2. Write the account title. 3. Write the check number. 4. Write the debit account. 5. Write the credit amount. LESSON 14-1

  6. Dividends • Dividends are a temporary account that is closed to Retained Earnings at the end of the fiscal period LESSON 14-1

  7. TERMS REVIEW page 408 • retained earnings • dividends • board of directors • declaring a dividend LESSON 14-1

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