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
- Obtain a copy of the notes handout.
- Read Lesson 14-2 on pages 409-414.
- As you read, utilize this presentation to help you fill in the missing parts on the handout.
Working Together 14-2
- Make a copy of this spreadsheet.
- Place this file in your Chapter 14 folder.
- Rename the file to Lesson 14-2,14-3,14-4,14-5,14-6 (Your Initials)
- Complete the spreadsheet according to the directions on page 414 or below.
On Your Own 14-2
- 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
- Complete this self-assessment for Lesson 14-2. You can use your textbook and notes to complete this assessment.
Application Problem 14-2
- 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.