微觀經(jīng)濟學dividends,retainedearningsandincomereporting-wenkub
2022-08-20 10:05:51 本頁面
【正文】 1. Declaration date –Board of Directors formally declares a cash dividend and a liability is recorded PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 4 Dec 1 Retained Earnings 50 000 Dividends Payable 50 000 (To record declaration of cash dividend of 50c per share on 100 000 shares) Cash dividends continued 2. Record date –Date on which pany closes its share register and determines the shareholders entitled to receive the dividend 3. Exdividend date –Usually 4th business day before pany’s record date –Dividend only paid to shareholders who purchase shares before record date PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 5 Cash dividends continued 4. Payment date –Date dividend cheques are mailed or transferred electronically to shareholders –Date on which payment of dividend is recorded PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 6 Jan 20 Dividends Payable 50 000 Cash 50 000 (To record payment of cash dividend) Cash dividends continued Allocating cash dividends between preference and ordinary shares –Cash dividends must be paid first to preference shareholders before any ordinary shareholders are paid –For cumulative preference shares, any dividends in arrears and current year dividend must be paid before allocating any dividends to ordinary shareholders PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 7 Cash dividends continued –For noncumulate preference shares, only current year’s dividend must be paid before paying any dividends to ordinary shareholders PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 8 Cash dividends continued Example –As at 30 June 2020 ? 1000 8% $100 cumulative preference shares ? 50 000 ordinary shares issued at $10 ? Directors declares $6000 cash dividend PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 9 Jun 30 Retained Earnings 6 000 Dividends Payable 6 000 (To record $6 per share cash dividend to preference shareholders) Cash dividends continued –Preference dividend should have been 8% x $100 = $8 –Therefore, $2 per share are in arrears –As at 30 June 2020 ? Directors declare $50 000 cash dividend ? Allocation between classes of shares: PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 10 Total dividend $50 000 Allocated to preference shares Dividends in arrears, 2020 (1000 x $2) $ 2 000 2020 dividend (1000 x $8) 8 000 10 000 Remainder allocated to ordinary shares $40 000 Cash dividends continued – Entry to record declaration of dividend: – Note, if preference shares were not cumulative, in 2020 ? Preference shareholders receive $8 000 ? Ordinary shareholders receive $42 000 PowerPoint presentation by Dr Anne Abraham, University of Western Sydney 11 Jun 30 Retained Earnings 50 000 Dividends Payable 50 000 (To record declaration of cash dividends of $10 000 to p
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