LESSON 14-1 Distributing Corporate Earnings to Stockholders 5/15/2019 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 LESSON 14-1

T-Accounts RETAINED EARNINGS DIVIDENDS LESSON 14-1 Debit Credit Debit

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

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

14-1 Work Together LESSON 14-1

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