Day 131

After studying Chapter 14, you will be able to:

• Define accounting terms related to distributing dividends and preparing a work sheet for a merchandising business.
• Identify accounting concepts and practices related to distributing dividends and preparing a work sheet for a merchandising business.
• Journalize the declaration and payment of a dividend.
• Begin a work sheet for a merchandising business.
• Plan work sheet adjustments for merchandise inventory, supplies, prepaid expenses, uncollectible accounts, and depreciation.
• Calculate federal income tax and plan the work sheet adjustment for federal income tax.
• Complete a work sheet for a merchandising business.

Lesson 14-2 Notes

1. Obtain a copy of the notes handout.
2. Read Lesson 14-2 on pages 409-414.
3. As you read, utilize this presentation to help you fill in the missing parts on the handout.

Working Together 14-2

1. Make a copy of this spreadsheet.
2. Place this file in your Chapter 14 folder.
3. Rename the file to Lesson 14-2,14-3,14-4,14-5,14-6 (Your Initials)
4. Complete the spreadsheet according to the directions on page 414 or below.

On Your Own 14-2

1. A partially complete work sheet for Sonoma Treasures is given in the Lesson 14-2,14-3,14-4,14-5,14-6 spreadsheet.  Four general ledger accounts are shown below.  Work this problem independently as directed below or on page 414.
   

   Line	Account	Account Balance
   8	Prepaid Insurance	$12,000.00
   25	Capital Stock	$210,000.00
   30	Sales Discount	$715.25
   43	Rent Expense	$30,000.00

Self-Assessment 14-2

1. Complete this self-assessment for Lesson 14-2.  You can use your textbook and notes to complete this assessment.  

Application Problem 14-2

1. Using your Lesson 14-2,14-3,14-4,14-5,14-6 spreadsheet, use the Application Problem worksheet at the bottom left, and complete the problem as directed on page 438 or below.