Ebook Accounting principles (12/E): Part 2
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Ebook Accounting principles (12/E): Part 2
Corporations: Dividends, Retained Earnings, and Income ReportingCHAPTER PREVIEWAs Indicated in the Feature Story below, a profitable corporation likeV Ebook Accounting principles (12/E): Part 2Van Meter Inc. can provide real benefits to employees through its stock bonus plan. And as employees learn more about the role of dividends, retained earnings, and earnings per share, they develop an understanding and appreciation for what the company Is providing to them.FEATURE STORYOwning a Piece Ebook Accounting principles (12/E): Part 2 of the ActionVan Meter Inc., an electrical-parts distributor in Cedar Rapids, Iowa, IS 100% employee-owned. For many years, the company has issued boEbook Accounting principles (12/E): Part 2
nuses in the form of shares of company stock to all of its employees. These bonus distributions typicalfy have a value equal to several weeks of pay. Corporations: Dividends, Retained Earnings, and Income ReportingCHAPTER PREVIEWAs Indicated in the Feature Story below, a profitable corporation likeV Ebook Accounting principles (12/E): Part 2any-wide meeting and said that he did not see any real value in receiving the company's shares. Instead, he wanted "a few hundred extra bucks for beer and cigarettes *As it turned out. many of the company's 340 employees felt this way. Rather than end the stock bonus program, however, the company de Ebook Accounting principles (12/E): Part 2cided to educate its employees on the value of share ownership. The employees are now taught how to determine the worth of their shares, the rights thEbook Accounting principles (12/E): Part 2
at come with share ownership, and what they can do to help increase the value of those shares.As part of the education program, management developed aCorporations: Dividends, Retained Earnings, and Income ReportingCHAPTER PREVIEWAs Indicated in the Feature Story below, a profitable corporation likeV Ebook Accounting principles (12/E): Part 2rth of salary. For example, a person earning a 530,000 salary would earn 5300,000 in wages over a 10-year period During that same 10-year period. It was likely that the value of the employee’s shares would accumulate to about $150,000 (five years' worth of salary). This demonstrates in more conơete Ebook Accounting principles (12/E): Part 2terms why employees should be excited about share ơ.vnershlpA 12-member employee committee has the responsibility of educating new employees about theEbook Accounting principles (12/E): Part 2
program. The committee also runs training programs so that employees understand how their cost-saving actions improve the company's results— and its Corporations: Dividends, Retained Earnings, and Income ReportingCHAPTER PREVIEWAs Indicated in the Feature Story below, a profitable corporation likeV Ebook Accounting principles (12/E): Part 2and employee turnover has fallen from 18% to 8%. Given van Meter's success, many of the 10,000 other employee-owned companies in the United States might want to investigate whether their employees understand the benefits of share ownership.Source Adapted from Smona Covel. 'Hw to Get Workers to Think Ebook Accounting principles (12/E): Part 2 and Act Ike Ortners.’ kV*Vstreet AxirrWOnWiFetiruary IS, 2CO8I.608Explain how to account foe stock dividends and splits.•Stock dividends•Stock spitsPEbook Accounting principles (12/E): Part 2
repare and analyze a comprehensive stockholders' equity section.•Retained earnings•Statement presentation and analysisDOIT' Retained Eammqs _ r StatemCorporations: Dividends, Retained Earnings, and Income ReportingCHAPTER PREVIEWAs Indicated in the Feature Story below, a profitable corporation likeV Ebook Accounting principles (12/E): Part 2 to thesection at the end of the chapter for a review of key concepts and practiceapplications with solutions.Visitfor additional tutorials and practice opportunities.WileyPLUS with ORION610 14 Corporations: Dividends, Retained Earnings, and Income ReportingLEARNINGOBJECTIVE MFExplain how to account Ebook Accounting principles (12/E): Part 2 for cash dividends.A dividend is a corporation's distribution of cash or stock to its stockholders on a pro rata (proportional to ownership) basis. PEbook Accounting principles (12/E): Part 2
ro rata means that if you own iEbook Accounting principles (12/E): Part 2
F. was 22 cents, and lor ConAgra Foods it was 25 cents.Cash DividendsA cash dividend is a pro rata distribution of cash Io stockholders. Cash dividendCorporations: Dividends, Retained Earnings, and Income ReportingCHAPTER PREVIEWAs Indicated in the Feature Story below, a profitable corporation likeV Ebook Accounting principles (12/E): Part 2vidend depends on the laws of the state in which the company is incorporated. Payment of cash dividends from retained earnings is legal in all states. In general, cash dividend distributions from only the balance in common stock (legal capital) are illegal. Ebook Accounting principles (12/E): Part 2Corporations: Dividends, Retained Earnings, and Income ReportingCHAPTER PREVIEWAs Indicated in the Feature Story below, a profitable corporation likeVGọi ngay
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