Record journal entries for treasury stock transactions. Earnings and income tax Illustrate the application of income taxes to corporate earnings. Extraordinary items in the financial statements List and illustrate the major categories of unusual items relating to net income. Appropriation of retained earnings Name the major reasons for appropriating retained earnings. Record journal entries for appropriations of retained earnings.
Dividends Define cash dividend and stock dividend.
Calculate total dividends and dividends per share for preferred and common stock. Record journal entries for cash and stock dividends. Define stock split. Stockholders' equity on the balance sheet Prepare the stockholders equity section of the balance sheet. Statement of cash flow Define the Direct and Indirect Method.