Chapter 14- corporations, dividends

5853 WordsOct 24, 201424 Pages
CHAPTER 14 Corporations: Dividends, Retained Earnings, and Income Reporting ASSIGNMENT CLASSIFICATION TABLE Exercises A Problems B Problems 1, 2, 3 1, 2, 3, 4, 5, 6, 7 1A, 2A, 3A, 4A, 5A 1B, 2B, 3B, 4B, 5B 9, 10, 11, 12, 13, 14 4, 5 6, 8, 9 2A, 3A, 4A 2B, 3B, 4B Prepare and analyze a comprehensive stockholders’ equity section. 14, 15 6, 7 5, 6, 10, 11, 13, 15, 16 1A, 2A, 3A, 4A, 5A 1B, 2B, 3B, 4B, 5B 4. Describe the form and content of corporation income statements. 15, 16 8 12, 13, 14 5. Compute earnings per share. 17 9, 10 12, 14, 15, 16, 17 3A 3B Study Objectives Questions 1. Prepare the entries for cash dividends and…show more content…
The declaration commits the corporation to a binding legal obligation that cannot be rescinded. Record date is the date that marks the time when ownership of the outstanding shares is determined from the stockholder records maintained by the corporation. The purpose of this date is to identify the persons or entities that will receive the dividend. Payment date is the date on which the dividend checks are mailed to the stockholders. (b) The accounting entries and their dates are: Declaration date—Debit Retained Earnings and Credit Dividends Payable. No entry is made on the record date. Payment date—Debit Dividends Payable and Credit Cash. 4. The allocation of the cash dividend is as follows: Total dividend............................................................................................... Allocated to preferred stock Dividends in arrears—one year....................................................... Current year dividend ........................................................................ Remainder allocated to common stock................................................... $45,000 $10,000 10,000 20,000 $25,000 5. A cash dividend decreases assets, retained earnings, and total stockholders’ equity. A stock dividend decreases retained earnings, increases paid-in capital, and has no effect on total

More about Chapter 14- corporations, dividends

Open Document