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

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

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 ×

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 ×

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 ×

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 –

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% ÷

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

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

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

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