Business Administration 2257 Study Guide - Midterm Guide: Income Statement, Trial Balance, Operating Lease
23 Apr 2018
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Asset: dr asset (market value or agreed price) cr common or preferred share. Cr pre-paid (so you are square going into allocation) *make sure to depreciate for fye (if there was allocation to wip put that % of dep. Dr. asset (market value or agreed price cr common or preferred share (asset value - cash) cr cash. Dr preferred shares = (preferred shares (bv) x % shares converted) cr common or preferred. Cash dividends **make sure you pay off preferred shares before common but only do once. Date of declaration: dr. r/e= shares outstanding x dividend per share cr dividends payable. Date of payment: dr dividends payable cr cash should be done. Stock dividends: ** make sure you pay of preferred shares before common. Date of declaration: dr r/e = (shares outstanding x % dividend x stock market valued at declaration) Date of payment: dr stock dividend distributable cr common stock.
