Journal entries: Corporations and equity

Issuing shares at par and above par, dividends, buying back shares, the legal reserve, converting a loan into equity and closing the result to retained earnings.

Start practicingPrintable worksheet with answer key

The entries

1. Issuing common stock above par
2. Declaring a cash dividend
3. Paying a declared dividend
4. Buying treasury stock
5. Declaring and paying a dividend the same day
6. Allocating profit to the legal reserveNot in: United States (US textbooks)
7. Converting a loan into shares
8. Closing a corporation’s net income to Retained Earnings
9. Closing a corporation’s net loss to Retained Earnings
10. Issuing common stock in exchange for land

Other topics

• Starting the business
• Buying goods and supplies
• Selling goods and services
• Fixed assets
• Expenses and payroll
• Adjusting, closing and correcting
• Cash and bank
• Notes and loans
• Inventory and cost of goods
• Multi-step scenarios