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

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

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

4. DECLARING A DIVIDEND
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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, 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
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January 15. Paid cash for quarterly dividend declared December 15, $5, 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. 14-1 Work Together
LESSON 14-1

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