怀尔德《会计学原理》Chapter-14.pptVIP

* This is the way Matrix would report the common stock on its balance sheet. The $200,000 is the par value of the stock sold and the $2,300,000 is the excess over par value Matrix received for the stock. These two amounts added together total $2,500,000, the amount of cash received for the sale of the stock. * There are three important dates to remember when discussing dividends: ? The date of declaration is the date the directors declare the dividend. At this time, a liability is created and must be recorded. ? The date of record is important because you must own the stock on this date to receive the dividend. No entry is required in the accounting records. ? The date of payment is the date the corporation pays the dividend to the stockholders who owned the stock on the record date. Let’s look at an example. * Part I. Dana Incorporated declared a $1 per share dividend on January 19th on its 10,000 common shares outstanding. Let’s record the entry on the date of declaration. Part II. The entry on January 19th includes a debit to Retained Earnings and a credit to Common Dividend Payable of $10,000. * Part I. On February 19th, the record date, we need to know who owns the stock, but an accounting entry is not needed. Let’s record the entry on the date of payment. Part II. On March 19th, the payment date, Dana Incorporated would debit Common Dividend Payable and credit Cash for the $10,000 dividend. * Part I. Sometimes corporations will distribute additional shares of stock as a dividend. Reasons for doing this include keeping the market price affordable by increasing the number of shares outstanding and providing evidence of management’s confidence in the company. Part II. A stock dividend can be classified as small or large. A small stock dividend is a distribution of stock that is less than or equal to 25 percent of the outstanding shares. A large stock dividend is a distribution of stock that is greater than 25 percent of the outstanding sh