Lesson 27: Accounting for Declaration and Payment of a Dividend
Duration of Days: 3
Lesson Objective
Explain the relationship between retained earnings and dividends and account for declaration and payment of dividends.
What is retained earnings, and how is it calculated?
How do retained earnings impact a company’s financial position?
What are dividends, and why do companies pay them to shareholders?
retained earnings, dividends, board of directors, declaring a dividend
CTE Business & Finance Technology
B. Accounting Principles: Identify and describe generally accepted accounting principles (GAAP/IFRS) and explain how the application of these principles impacts the recording of financial transactions and the preparation of financial statements.
11. Describe and record equity-related transactions.
HS.CTE.3B - 3B. Apply concepts and processes in a multistep procedure
The SAT measures student proficiency in math reading, language, and writing. With strong scores, accounting students set themselves up for successful entry into accounting and finance programs.
Description: To understand the concept of retained earnings and dividends, and how they impact a company's financial statements.
Purpose: dividends affect retained earnings and vice versa and is a fundamental relationship in financial accounting.
DOK 1
Define retained earnings and dividends.
List the components that contribute to retained earnings.
DOK 2
Summarize the process of accounting for dividends from declaration to payment
DOK 4
Independent practice accounting concepts/transactions promote critical thinking and problem-solving in accounting. Helps identify areas where they excel or need improvement.
A publicly traded company, such as Apple or Microsoft, decides whether to pay dividends to shareholders or reinvest profits into research and development or expansion projects.
Paying dividends increases retained earnings
Sampling, modeling, one one instruction, Google classroom or Moodle. Paper or or online assignments, online instructional tools, videos, textbook or online textbook, excel real world application of information, Spanish version available for ELL students
Guided Notes worksheet
Guiding questions/term assignment
work together/on own assignment application or mastery working papers
Century 21, Accounting, General Journal, 11th edition, online/paper edition.
Online working papers (Mindtap)
Microsoft Excel software
Online instructional tools