IncomeandChangesinRetainedEarnings文件材料.ppt

Dividend Dates X Date of Record Stockholders holding shares on this date will receive the dividend. (No entry) Date of Payment Record the payment of the dividend to stockholders. Dividend Dates Dividend DatesQuestion On June 1, 1999 a corporation’s board of directors declared a dividend for the 2,500 shares of its $100 par value, 8% preferred stock. The dividend will be paid on July 15. Which of the following will be included in the July 15 entry? a. Debit Retained Earnings $20,000. b. Debit Dividends Payable $20,000. c. Credit Dividends Payable $20,000. d. Credit Preferred Stock $20,000. On June 1, 1999 a corporation抯 board of directors declared a dividend for the 2,500 shares of its $100 par value, 8% preferred stock. The dividend will be paid on July 15. Which of the following will be included in the July 15 entry? a. Debit Retained Earnings $20,000. b. Debit Dividends Payable $20,000. c. Credit Dividends Payable $20,000. d. Credit Preferred Stock $20,000. Dividend DatesQuestion $100 ?8% = $8 dividend per share $8 ?2,500 = $20,000 total dividend Accounting for Stock Dividends No change in total stockholders?equity. All stockholders retain same percentage ownership. No change in par values. Distribution of additional shares of stock to stockholders. Summary of Effects of Stock Dividends and Stock Splits Prior Period Adjustments Adjust retained earnings retroactively. The adjustment should be disclosed net of any taxes. The correction of an error identified as affecting net income in a prior period. Comprehensive Income Comprehensive Income GAAP excludes some unrealized items from income, such as the change in market value of available-for-sale debt and equity investments. Comprehensive Income Hang in there! We are coming down the home stretch! Yeah, that is easy for you to say! Chapter 14 Financial Statement Analysis Purpose of Analysis Internal Users External Users Financial statement analysis helps users make better decisions. Managers Officers Inte