1. LESSON 14-1
Distributing Corporate
Earnings to Stockholders
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2. 2
STOCKHOLDERS’ EQUITY ACCOUNTS
USED BY A CORPORATION
3110
3120
3130
3140
page 405
(3000) STOCKHOLDERS’ EQUITY
Capital Stock
Retained Earnings
Dividends
Income Summary
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-1

3. 3
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
1. Write the date.
2. Write the title of the account
debited.
3. Write the memorandum number.
6
4. Write the debit amount.
5. Write the title of the account
credited.
6. Write the credit amount.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-1

4. 4
PAYING A DIVIDEND
page 407
January 15. Paid cash for quarterly dividend declared December
15, $5,000.00. Check No. 379.
1
1.
2.
3.
4.
5.
2
3
4
5
Write the date.
Write the account title.
Write the check number.
Write the debit account.
Write the credit amount.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-1

5. 5
TERMS REVIEW




page 408
retained earnings
dividends
board of directors
declaring a dividend
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-1

6. 5
TERMS REVIEW




page 408
retained earnings
dividends
board of directors
declaring a dividend
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-1