Contabilidad Bsica II

ACCO 112
Taller Cinco
Profesor Noel Ortiz Torres

Universidad del Este, Universidad Metropolitana,Universidad del Turabo

Profesor Noel Ortiz

Corporacione
s:
Dividendos
y
Ganacias
Retenidas

Objetivos
1. Preparar entradas para la distribucin de
dividendos en efectivo y en acciones.
2. Identificar los renglones que se incluyen en el
estado de ganancias retenidas.
3. Diferenciar entre el capital pagado y las
ganancias retenidas.
4. Describir la presentacin de estados financieros
corporativos: Estado de Ingresos y gastos; Estado
de Ganancias Retenidas y el Estado de Situacin.
5. Indicar la presentacin de renglones que no son
tpicos de las operaciones regulares de la empresa.

Dividendos
Dividendos
Una distribucin de dinero o acciones para los
accionitas en base proporcional.
Tipos de Dividendos:
1.

Cash dividends.

3.

Script (promissory note).

2.

Property dividends.

4.

Stock dividends.

Los dividendos se expresan: (1) como un porciento del

valor par o valor establecido, o (2) como una cantidad
en dlares por accin.

Dividendos
Dividendos
Los dividendos tienen tres fechas importantes:

Dividendos
Dividendos
Dividendos en efectivo

Para una corporacin pagar a dividendos, este

tiene que tener:
1. Retained earnings (ganancia retenida)
Pagar dividendos de retained earnings es
legal en todos los estados.
2. Suficiente dinero.
3. Una declaracin de dividendos por la Junta
de Directores.

Dividendos
Dividendos
What would be the journal entries made by a
corporation that declared a $50,000 cash
dividend on March 10, payable on April 6 to
shareholders of record on March 25?
March 10 (Declaration Date)
Retained earnings

50,000

Dividends payable

March 25 (Date of Record)

50,000

No entry

April 6 (Payment Date)

Dividends payable
Cash

50,000
50,000

Dividendos
Dividendos
Distribucin de dividendos entre
acciones preferidas y acciones comunes.
Los accionitas de acciones preferidas que acumlan los
dividendos no pagados en aos anteriores, los cobran antes
que los dividendos para los accionistas de acciones
comunes.

Dividendos
Dividendos
Exercise Arnez Corporation was organized on
January 1, 2015. During its first year, the
corporation issued 2,000 shares of $50 par value
preferred stock and 100,000 shares of $10 par
value common stock. At December 31, the company
declared the following cash dividends: 2015,
$6,000, 2016, $12,000, and 2017, $28,000.
Instructions: (a) Show the allocation of dividends
to each class of stock, assuming the preferred
stock dividend is 8% and not cumulative.

Dividendos
Dividendos
Exercise (a) Show the allocation of dividends to
each class of stock, assuming the preferred stock
dividend is 8% and not cumulative.

* 2,000 shares x $50 par x 8% = $8,000

Dividendos
Dividendos
Exercise (b) Show the allocation of dividends to
each class of stock, assuming the preferred stock
dividend is 9% and cumulative.

**
*

* 2,000 shares x $50 par x 9% = $9,000

** 2010 Pfd. dividends $9,000 declared $6,000 = $3,000

Dividendos
Dividendos
Exercise (c) Journalize the declaration of the cash
dividend at December 31, 2017, under part (b).

Journal entry:
Retained earnings
Dividends payable

28,000
28,000

Dividendos
Dividendos
Stock Dividends
Pro rata distribution of the corporations own stock.

Results in decrease in retained earnings and increase in paid-in

capital.

Dividendos
Dividendos
Stock Dividends
Reasons why corporations issue stock dividends:
1.

To satisfy stockholders dividend expectations

without spending cash.

2.

To increase the marketability of the corporations

stock.

3.

To emphasize that a portion of stockholders

equity has been permanently reinvested in the
business.

Dividendos
Dividendos
Size of Stock Dividends

Small stock dividend (less than 2025% of

the corporations issued stock, recorded at
fair market value) *
Large stock dividend (greater than 2025%
of issued stock, recorded at par value)
* This accounting is based on the assumption that a small
stock dividend will have little effect on the market price
of the outstanding shares.

Dividendos
Dividendos
HH Inc. has 5,000 shares issued and outstanding.
The per share par value is $1, book value $32 and
market value is $40.
10% stock dividend is declared
Retained earnings
(5,000 x 10% x $40)
Common stock dividends distributable

20,000
500

Additional paid-in capital

19,500

Stock issued
Common stock div. distributable

Common stock (5,000 x 10% x $1)

500
500

Dividendos
Dividendos
Stockholders Equity with Dividends
Distributable

Dividendos
Dividendos
Efectos de Stock Dividends
HH Inc.
Stockholders' equity
Paid-in capital
Common stock, $1 par, 5,000 issued
and outstanding
Paid-in capital in excess of par
Retained earnings
Total stockholders' equity
Outstanding shares
Book value per share

Before
Dividend

5,000
45,000
110,000
$ 160,000
$

5,000
32

After
Dividend

5,500
64,500
90,000
$ 160,000
$

5,500
29

Net
Change

$ 500
19,500
(20,000)

$
0

Dividendos
Dividendos
Which of the following statements about small stock
dividends is true?
a. A debit to Retained Earnings for the par value
of the shares issued should be made.
b. A small stock dividend decreases total
stockholders equity.
c. Market value per share should be assigned to
the dividend shares.
d. A small stock dividend ordinarily will have no
effect on book value per share of stock.

Dividendos
Dividendos
In the stockholders equity section, Common Stock
Dividends Distributable is reported as a(n):
a. deduction from total paid-in capital and
retained earnings.
b. current liability.
c. deduction from retained earnings.
d. addition to capital stock.

Dividendos
Dividendos
Stock Split
Reduce el valor en el mercado de la accin.
Para el stock split no hay que hacer entrada de
jornal.
Disminuye el valor par y aumenta el nmero de
acciones.

Dividendos
Dividendos
HH Inc. has 5,000 shares issued and
outstanding. The per share par value is $1,
book value $32 and market value is $40.

2 for 1 Stock Split

No Entry -- Disclosure that par is now
$.50 and shares outstanding are 10,000.

Dividendos
Dividendos
Effects of Stock Dividends
HH Inc.
Stockholders' equity
Paid-in capital
Common stock
Paid-in capital in excess of par
Retained earnings
Total stockholders' equity
Outstanding shares
Book value per share

Before
Split

5,000
45,000
110,000
$ 160,000
$

5,000
32

After
Split

5,000
45,000
110,000
$ 160,000
10,000
$
16

Net
Change

Retained
Retained Earnings
Earnings
Retained earnings es la ganancia retenida es
la ganancia neta que la coporacin retiene
para el uso.
La ganacia neta aumenta el Retained Earnings y la
prdida neta disminuye el Retained Earnings.

Retained earnings es parte de la reclamacin de los

accionistas del total de los activos (assets) de la
corporacin corporation.
Si el retained earnings est en dbito se llama
dficit.

Restriciones
Restriciones Retained
Retained
Earnings
Earnings

Restrictions can result from:

1. Legal restrictions.
2. Contractual restrictions.
3. Voluntary restrictions.

Companies generally disclose retained earnings

restrictions in the notes to the financial
statements.

Prior
Prior Period
Period Adjustments
Adjustments
Corrections of Errors
Result from:

mathematical mistakes
mistakes in application of accounting
principles
oversight or misuse of facts

Corrections treated as prior period adjustments

Adjustment made to the beginning balance of
retained earnings

Prior
Prior Period
Period Adjustments
Adjustments

Before issuing the report for the year ended December 31, 2015,
you discover a $50,000 error (net of tax) that caused the 2014
inventory to be overstated (overstated inventory caused COGS
to be lower and thus net income to be higher in 2014. Would this
discovery have any impact on the reporting of the Statement of
Retained Earnings for 2015?

Retained
Retained Earnings
Earnings Statement
Statement

Retained
Retained Earnings
Earnings
Statement
Statement
The
company prepares the statement from the
Retained Earnings account.

Retained
Retained Earnings
Earnings
Statement
Statement
All but one of the following is reported in a
retained earnings statement. The exception is:
a. cash and stock dividends.
b. net income and net loss.
c. some disposals of treasury stock below cost.
d. sales of treasury stock above cost.

Statement
Statement Analysis
Analysis and
and Presentation
Presentation

Statement
Statement Analysis
Analysis and
and Presentation
Presentation
Stockholders Equity Analysis
Return on Common
Stockholders
Equity
=

Net Income Available to Common Stockholders

Average Common Stockholders Equity

This ratio shows how many dollars of net

income the company earned for each dollar
invested by the stockholders.

Statement
Statement Analysis
Analysis and
and Presentation
Presentation

Income
Statement
Presentation

Statement
Statement Analysis
Analysis and
and Presentation
Presentation
Income Statement Analysis
Earnings
Per Share

Net Income minus Preferred Dividends

=

Weighted-Average Common Shares

Outstanding

This ratio indicates the net income earned by each

share of outstanding common stock.

Statement
Statement Analysis
Analysis and
and Presentation
Presentation

The income statement for Nadeen, Inc. shows income

before income taxes $700,000, income tax expense
$210,000, and net income $490,000. If Nadeen has 100,000
shares of common stock outstanding throughout the year,
earnings per share is:
a.

$7.00.

b. $4.90.
c.

$2.10.

d. No correct answer is given.

($490,000 / 100,000 = $4.90)