Week 14 — Readings & Resources

Your primary reading is Chapter 14 (in this module). Everything below is the optional, go-deeper layer — pick what helps, skip the rest.

How to use this page

This page has 11 items (5 readings and 6 videos). Allow 57–68 minutes for everything. Each group points back to the matching chapter section and class-session segment, so use the full menu when you want more, or take the quick path below.

Every video here has captions: turn them on with the CC button in the player. The chapter covers the same ideas in text.

Pick-one quick path (20–21 min total)

• Issuance of Common Stock — Learning with Luke
• Cash and Stock Dividends — Learning with Luke
• Stock Split — Investor.gov

① Corporations, shares, and the money owners pay in

Chapter 14, Section “Describe the corporate form” · Session 1, Segment 1, “The corporate form and its shares” · Remember: Common Stock takes par, Additional Paid-in Capital takes the rest, and a C corporation and an S corporation differ in how federal income tax reaches the owners.

• S corporations — Internal Revenue Service — the IRS's own page saying that an S corporation elects to pass its income, losses, deductions, and credits through to its shareholders, who report them on their personal returns, and listing the limits on who may own one, including no more than 100 shareholders and only one class of stock; read the opening and the qualification list and skip the filing charts, which this course does not teach and which are not advice. (reading, 3–5 min)
• Choose a business structure — U.S. Small Business Administration — the SBA's guide to business structures; scroll to its corporation part, which describes a C corporation as paying income tax on its own profits, with profits sometimes taxed again when shareholders receive dividends, and an S corporation as passing profits through to its owners; it also names the cooperative as a structure, the type of ownership the chapter only names. It is a general guide, not advice for any business. (reading, 4–6 min)
• S Corporation: Pass-Through Taxation and IRS Filing Basics — IRSvideos — a short IRS video on how an S corporation's income, losses, deductions, and credits flow to its shareholders, who report them on their own returns, and how a business elects S status; the IRS also publishes its text script. Use it while completing the Week-14 module overview. (video, 1 min) (captions: creator)
• Issuance of Common Stock — Learning with Luke — the difference between owning and running a corporation, then par value as a dollar amount per share set in the charter, and a run of issue entries for one invented corporation: shares sold at par, the same shares sold above par with the extra credited to paid-in capital in excess of par value, the account the chapter calls Additional Paid-in Capital, and shares issued for equipment or services; its stated-value and no-par cases go beyond what this course keys. (video, 7 min) (captions: creator)

② Dividends, stock dividends, and splits

Chapter 14, Section “Record a cash dividend on its three dates” · Session 1, Segment 2, “Dividends and their dates” · Remember: a cash dividend is recorded when declared and when paid, never on the record date, and a split or stock dividend leaves total equity unchanged.

• Cash and Stock Dividends — Learning with Luke — the three dividend dates, with entries only on the declaration date and the payment date, then a 20-cent cash dividend recorded against a common dividend payable, followed by small and large stock dividends and a 2-for-1 split; it debits Retained Earnings when the dividend is declared, where the chapter debits Dividends and closes it to Retained Earnings, and its small-versus-large stock dividend entries go beyond what this course keys. This builds on Week 12's work with current liabilities, because the dividend payable it records is one. (video, 12 min) (captions: creator)
• Ex-Dividend Dates: When Are You Entitled to Stock and Cash Dividends — Investor.gov — the SEC's investor-education page on the record date that fixes who receives a dividend, with two worked timelines running from a declaration date to a payable date; it adds the ex-dividend date, a stock exchange rule the chapter does not use, and it is written for investors, so read it for the dates, not as advice on buying or selling. (reading, 4–6 min)
• Stock Split — Investor.gov — the SEC's one-paragraph definition of a stock split as more shares with no change in the shareholders' equity, with a two-for-one example in which 100 shares become 200 at half the price. (reading, 1–2 min)
• Stock Dividends — Katheryn Reynolds — how a stock dividend differs from a cash dividend: nothing leaves the company, an amount moves from retained earnings to contributed capital, and total shareholders' equity does not change, with a closing side-by-side of the two kinds of dividend; its small-versus-large recording rules go beyond what this course keys, and its remark that the ex-dividend date usually falls two days before the record date is out of date: the Investor.gov page above now sets it on the record date itself, or one business day earlier when the record date is not a business day. (video, 8 min) (captions: automatic)

③ Buying shares back, and earnings per share

Chapter 14, Section “Record treasury stock at cost” · Session 2, Segment 3, “Treasury stock and earnings per share” · Remember: treasury stock is recorded at cost and subtracted from equity, and earnings per share divides earnings by the average shares outstanding.

• Treasury stock explained — The Finance Storyteller — a buyback recorded under the cost method with a debit to Treasury Stock and a credit to Cash, with no gain or loss on the income statement; it calls treasury stock a contra-equity account, not an asset, and says bought-back shares are still issued but not outstanding. It reads a real company's reported figures, which this course does not key, and its part on reissuing shares goes past the chapter. Stop here before the statement of cash flows; next week takes it up. (video, 6 min) (captions: creator)
• Earnings Per Share explained — The Finance Storyteller — a short explainer of earnings per share as net income divided by the number of shares, the difference between basic and diluted shares, and why earnings per share is not the same as dividends per share; its formula leaves out the subtraction of preferred dividends the chapter's definition includes, it uses a real company's reported figures that this course does not key, and diluted earnings per share is beyond this course. (video, 3 min) (captions: creator)

Optional one-stop reference (free online reference)

• Beginners' Guide to Financial Statements — U.S. Securities and Exchange Commission — the SEC's plain-language guide; read its Balance Sheets section on shareholders' equity and its short Earnings Per Share part, and skip the cash flow and ratio parts for now. (reading, 8–12 min)

Heads-up (links rot): these point to outside sites that occasionally move or rename pages. If a link ever fails, tell your instructor and use the reference above in the meantime.

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