century 21 accounting © 2009 south-western, cengage learning lesson 11-3 calculating and...
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 11-3LESSON 11-3
Calculating and Journalizing Dividends for a Corporation
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LESSON 11-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Calculating Value of Preferred Stock
DIVIDENDSDIVIDENDS page 328
Number of Preferred Shares
Par Value =Value of
Preferred Stock×
1,000 $100.00 = $100,000.00×
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LESSON 11-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
DIVIDENDSDIVIDENDS page 328
Calculating Value of Common Stock
Number of Common Shares
Stated Value =Value of
Common Stock×
16,000 $20.00 = $320,000.00×
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LESSON 11-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
DIVIDENDSDIVIDENDS page 329
Calculating Dividend of Preferred Stock
=×Value of
Preferred StockPreferred
Dividend RatePreferred
Dividend Amount
$100,000.00 8% = $8,000.00×
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LESSON 11-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
DIVIDENDSDIVIDENDS 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–
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LESSON 11-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
DIVIDENDSDIVIDENDS 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%÷
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LESSON 11-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
JOURNALIZING DECLARATION OF JOURNALIZING DECLARATION OF DIVIDENDDIVIDEND page 330
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LESSON 11-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
JOURNALIZING PAYMENT JOURNALIZING PAYMENT OF A DIVIDENDOF A DIVIDEND page 330
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LESSON 11-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
TERMS REVIEWTERMS REVIEW
declaring a dividend date of declaration date of record date of payment
page 332