ACCOUNTING CHAPTER 10 NOTES contd.

ACCOUNTING CHAPTER - Chapter 10 Notes Continued Earned Capital Earned Capital represents the net asserts of the company that have been earned for

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Chapter 10 Notes Continued Earned Capital Earned Capital: - represents the net asserts of the company that have been earned for the stockholders rather than invested by the stockholders (invested capital) - transactions involving Retained Earnings Retained Earnings: - represents the earnings retained in the coporation – earnings not paid out as dividends to stockholders - equals net income less dividends - a young company has a small retained earnings grow and a large total paid in capital (money invested in a company) - has a normal credit balance unless losses exceed income Accumulated Deficit: a debit balance in Retained Earnings To Calculate Total Stockholders equity – subtract accumulated deficit from total paid in capital Dividends: distributions by a corporation to its stockholders - dividends are not paid on treasury shares repurchased by the company - Declaration Date: date cash dividend amount is declared by the Board of Directors,declaration of a dividend creates a binding legal obligation for the
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This document was uploaded on 10/27/2011 for the course ACC 222 at Miami University.

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ACCOUNTING CHAPTER - Chapter 10 Notes Continued Earned Capital Earned Capital represents the net asserts of the company that have been earned for

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