Lesson Plan 7.9 - Capital Accounts and Dividend
Distribution for a Corporation
Course Title – Accounting I
Session Title – Capital Accounts and Dividend Distribution for a Corporation
Lesson Purpose – Demonstrate understanding of a corporation’s capital
accounts and declaration and payment of dividend.
Behavioral Objectives


Explain in detail the capital accounts for a corporation.
Analyze and journalize declaration and payment of dividends.
Preparation
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C
7.a. follow oral and written
instructions;
7.b. develop time management skills
by setting priorities for completing
work as scheduled.
7.c. make decisions using
appropriate accounting concepts;
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
130.166.C
11.a. – discuss the nature of a
consolidated financial statement;
11.e. – compute dividends payable on
stock;
TAKS Correlation:
WRITING
Objective 5: The student will produce a piece of writing that demonstrates a
command of the conventions of spelling, capitalization, punctuation, grammar,
usage, and sentence structure.
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
MATH
Objective 10: The student will demonstrate an understanding of the
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:
Lesson 7.9 – Capital Accounts and Dividend
Distribution for a Corporation
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1




Textbook
Accounting Software
Journal Input Forms
Internet
Teaching Strategies:



Observation
Verbal Drills
Demonstration
Lesson Content:
This lesson has instruction on calculating accrued revenue and expenses as well
as analyzing and journalizing adjusting, closing and reversing entries for an
accrual accounting system.
Assessment:


Observation
Graded Assignment
Additional Resources:
Textbooks:
Guerrieri, Donald J., Haber, Hoyt, Turner. Glencoe Accounting RealWorld Applications and Connections. Glencoe McGraw-Hill, 2000.
ISBN/ISSN 0-02-815004-X.
Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 Accounting
Multicolumn Journal Anniversary Edition, 1st Year Course. SouthWestern Educational and Professional Publishing, 2003.
ISBN/ISSN: 0-538-43524-0
Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 General
Journal Accounting Anniversary Edition, 7th Edition. SouthWestern Educational and Professional Publishing, 2003.
ISBN/ISSN: 0-538-43529-1.
Lesson 7.9 – Capital Accounts and Dividend
Distribution for a Corporation
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 7.9.1 – Entries for Accrued Interest
Course Title – Accounting I
Session Title –Capital Accounts and Dividend Distribution for a Corporation
Activity Purpose - Demonstrate understanding of the corporate capital account.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates to
the following TEKS. Any
changes/alterations to the activities may
result in the elimination of any or all of
the TEKS listed.
120.42.C
7.a. follow oral and written instructions;
7.b. develop time management skills by
setting priorities for completing work as
scheduled;
This lesson, as published, correlates to
the following TEKS. Any
changes/alterations to the activities may
result in the elimination of any or all of
the TEKS listed.
130.166.C
N/A
TAKS Correlation:
WRITING
Objective 5: The student will produce a piece of writing that demonstrates a
command of the conventions of spelling, capitalization, punctuation, grammar, usage,
and sentence structure.
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
Materials, Equipment and Resources:


Textbook
Internet
Teaching Strategies:


Observation
Verbal Drills
Activity Outline:
1. Have a guest speaker from a corporation discuss the differences between
corporate capital accounts and partnership or sole proprietorship capital
accounts.
2. Prepare a presentation explaining the differences in the capital accounts for
a corporation.
Activity 7.9.1 – Examining the Corporate
Capital Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Assessment:


Observation
Graded Assignment
Quality Feature
Minimum of six slides
No errors on slides in grammar or spelling
Information on slides relevant to the topic and accurate
Completes in a timely manner
Activity 7.9.1 – Examining the Corporate
Capital Accounts
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 7.9.2 – Analyzing and Journalizing the Declaration
and Payment of a Dividend
Course Title – Accounting I
Session Title –Capital Accounts and Dividend Distribution for a Corporation
Activity Purpose - Demonstrate skill in analyzing and journalizing the declaration
and payment of a dividend.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates to
the following TEKS. Any
changes/alterations to the activities may
result in the elimination of any or all of
the TEKS listed.
120.42.C
7.a. follow oral and written instructions;
7.b. develop time management skills by
setting priorities for completing work as
scheduled;
This lesson, as published, correlates to
the following TEKS. Any
changes/alterations to the activities may
result in the elimination of any or all of
the TEKS listed.
130.166.C
11.a. – discuss the nature of a
consolidated financial statement;
11.e. – compute dividends payable on
stock;
TAKS Correlation:
MATH
Objective 10: The student will demonstrate an understanding of the mathematical
processes and tools used in problem solving.
Materials, Equipment and Resources:



Textbook
Input Forms
Accounting Software
Teaching Strategies:


Observation
Verbal Drills
Activity 7.9.2 – Analyzing and Journalizing the
Declaration and Payment of a Dividend
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity Outline:
1. Explain and demonstrate the new accounts Dividends and Dividends
Payable.
2. Demonstrate this transaction:
On December 1, 2003, declared a quarterly dividend of $1.00 per share;
capital stock issued is 20,000 shares for a total dividend of $20,000. Date of
payment is January 1, 2003.
Answer these questions about the transaction:
 What classification account is Dividends?
 What classification account is Dividends Payable?
 Explain why Dividends is a debit.
 Explain why Dividends Payable is a credit.
3. Demonstrate this transaction:
On January 1, 2004, paid cash for quarterly dividends declared on
December 1, 2003, $20,000. Check No. 2.
Answer these questions about the transaction:
 Why is Dividends Payable debited?
 What effect does the debit have on Dividends Payable?
 Why is Cash credited?
 What effect does the credit have on Cash?
 What would not journalizing this transaction do to the assets and liabilities
for this business?
Assessment:


Observation
Graded Assignment
Quality Feature
Student participates in class activity
Answers verbal questions accurately
Completes in a timely manner
Activity 7.9.2 – Analyzing and Journalizing the
Declaration and Payment of a Dividend
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1