1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 11-3 Calculating and Journalizing Dividends for a Corporation

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 11-3 Calculating Value of Preferred Stock DIVIDENDS page 328 Number of Preferred Shares Par Value= Value of Preferred Stock × 1,000$100.00=$100,000.00 ×

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 11-3 DIVIDENDS page 328 Calculating Value of Common Stock Number of Common Shares Stated Value= Value of Common Stock × 16,000$20.00=$320,000.00 ×

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 11-3 DIVIDENDS page 329 Calculating Dividend of Preferred Stock = × Value of Preferred Stock Preferred Dividend Rate Preferred Dividend Amount $100,000.008%=$8,000.00 ×

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 11-3 DIVIDENDS page 329 Calculating Amount Available for Common Dividends Total Amount Available for Dividends Preferred Dividend Amount = Amount Available for Common Dividends – $24,000.00$8,000.00=$16,000.00 –

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 11-3 DIVIDENDS page 329 Calculating Dividend Rate for Common Stock Common Dividend Amount Value of Common Stock = Common Dividend Rate ÷ $16,000.00$320,000.00=5% ÷

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 11-3 JOURNALIZING DECLARATION OF DIVIDEND page 330

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 11-3 JOURNALIZING PAYMENT OF A DIVIDEND page 330

9. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 11-3 TERMS REVIEW declaring a dividend date of declaration date of record date of payment page 332