253
Chapter 6
CORPORATIONS: CONTRIBUTED CAPITAL AND DIVIDENDS
Assessment Questions
AS-1 (
1
)
What is a common term that is used to call an owner of a corporation?
AS-2 (
1
)
Why is tax paid twice on earnings from a corporation? What is this phenomenon called?
LEARNING OUTCOMES
1
Describe the characteristics of corporate
organizations
2
Describe differences between public and
private corporations
3
Explain shareholders’ equity
4
Record the issuance of shares
5
Record the payment of cash dividends
6
Record stock splits and stock dividends
7
Record income tax expense
8
Record the closing entries for a corporation
9
Calculate retained earnings
10
Explain the importance of ethics for
corporate reporting
Appendix
11
Record the reacquisition of shares
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