【正文】 redit Preferred Stock $20,000. ?The McGrawHill Companies, Inc., 1999 Slide 1235 Irwin/McGrawHill On June 1, 1999 a corporation抯 board of directors declared a dividend for the 2,500 shares of its $100 par value, 8% preferred stock. The dividend will be paid on July 15. Which of the following will be included in the July 15 entry? a. Debit Retained Earnings $20,000. b. Debit Dividends Payable $20,000. c. Credit Dividends Payable $20,000. d. Credit Preferred Stock $20,000. Dividend Dates Question $100 ?8% = $8 dividend per share $8 ?2,500 = $20,000 total dividend D a t e D e s c r i pt i on D e bi t C r e di t1 5 J u l D i v i d e n d s P a y a b l e 2 0 , 0 0 0 C a s h 2 0 , 0 0 0 ?The McGrawHill Companies, Inc., 1999 Slide 1236 Irwin/McGrawHill Accounting for Stock Dividends No change in total stockholders?equity. All stockholders retain same percentage ownership. No change in par values. Distribution of additional shares of stock to stockholders. ?The McGrawHill Companies, Inc., 1999 Slide 1237 Irwin/McGrawHill Summary of Effects of Stock Dividends and Stock Splits Sm a l l St o c k D i v i d e n dL a r g e St o c k D i v i d e n dSt o c k Sp l i tsT o ta l St o c k h o l d e r s 39。 Eq u i tyN o Ef fe c t N o Ef fe c t N o Ef fe c tC o m m o n St o c k I n c r e a s e s I n c r e a s e s N o Ef fe c tPa i d i n C a p i ta l I n c r e a s e s N o Ef fe c t N o Ef fe c tR e ta i n e d Ea r n i n g s D e c r e a s e s D e c r e a s e s N o Ef fe c tN u m b e r o f Sh a r e s O u ts ta n d i n gI n c r e a s e s I n c r e a s e s I n c r e a s e sPa r V a l u e p e r Sh a r eN o Ef fe c t N o Ef fe c t D e c r e a s e s?The McGrawHill Companies, Inc., 1999 Slide 1238 Irwin/McGrawHill Prior Period Adjustments Adjust retained earnings retroactively. The adjustment should be disclosed of any taxes. The correction of an error identified as affecting ine in a prior period. ?The McGrawHill Companies, Inc., 1999 Slide 1239 Irwin/McGrawHill Comprehensive Ine I s s u a n c e o f n e ws h a r e s o f s t o c k .Ne t I n c o m e o rNe t L o s sP a y m e n t o fDi v i d e n d sNo r m a l l y , t h e r e a r e 3 w a y st h a t f i n a n c i a l p o s i t i o n c a n c h a n g e .?The McGrawHill Companies, Inc., 1999 Slide 1240 Irwin/McGrawHill Comprehensive Ine I s s u a n c e o f n e ws h a r e s o f s t o c k .Ne t I n c o m e o rNe t L o s sP a y m e n t o fDi v i d e n d sNo r m a l l y , t h e r e a r e 3 w a y st h a t f i n a n c i a l p o s i t i o n c a n c h a n g e .GAAP excludes some unrealized items from ine, such as the change in market value of availableforsale debt and equity investments. ?The McGrawHill Companies, Inc., 1999 Slide 1241 Irwin/McGrawHill Comprehensive Ine T h e a c c u m u la t e d a m o u n to f c h a n g e s a f f e c t in gC o m p r e h e n s iv e In c o m eis r e p o r t e d in e q u it y .A s a s e c o n din c o m e s t a t e m e n t .C o m b in e d w it hn e t in c o m e o nt h e In c o m eS t a t e m e n t .A s a n e le m e n to f s t o c k h o ld e r s 39。e q u it y .T h e r e a r e 3 o p t io n sf o r r e p o r t in gC o m p r e h e n s iv e In c o m eG A A P r e q u ir e s t h a t u n r e a liz e d it e m s t h a t a r en o r m a lly r e p o r t e d o n t h e b a la n c e s h e e t b ea d d e d b a c k t o c o m p u t e C o m p r e h e n s iv e In c o m e .?The McGrawHill Companies, Inc., 1999 Slide 1242 Irwin/McGrawHill Hang in there! We are ing down the home stretch! Yeah, that is easy for you to say! ?The McGrawHill Companies, Inc., 1999 Slide 1243 Irwin/McGrawHill 演講完畢，謝謝觀看！