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

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

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 14-1 DECLARING A DIVIDEND 1 2 3 4 56 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. 4.Write the debit amount. 3.Write the memorandum number. 2.Write the title of the account debited. 1.Write the date. 5.Write the title of the account credited. 6.Write the credit amount.

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 14-1 PAYING A DIVIDEND 12345 page 407 January 15. Paid cash for quarterly dividend declared December 15, $5,000.00. Check No. 379. 1. Write the date. 2. Write the account title. 3. Write the check number. 4. Write the debit account. 5. Write the credit amount.

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