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Subject Author Date
Confusion regarding Dividends learning.accounting 01-14-2008
Posted by learning.accounting on January 14, 2008, 9:46 pm
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 I'm a beginner at Accounting, but I am trying to learn.

I am confused on how CHK is reporting its dividends on its latest 10-K
filing. What I am seeing is up to 3 different numbers reported for
dividends (3 for preferred, 2 for common). I'm sure there is a simple
explanation, but I am at a loss. Any help? Any reasons why the
dividends would be reported differently on different statements?

Preferred Dividends, as reported on year ending Dec. 31, 2006:
-        Income Statement        $(88.645,000)
-        Statement of Cash Flow (Financing) $(88,424,000)
-        Statement of Stockholders Equity (Retained Earnings)        $(94,633,000)

Common Dividends, as reported on year ending Dec. 31, 2006:
-        Statement of Cash Flow (Financing) $(87,008,000)
-        Statement of Stockholders Equity (Retained Earnings)        $(95,809,000)

Source:
http://www.sec.gov/Archives/edgar/data/895126/000119312507043979/0001193125-07-043979-index.htm

Posted by John on January 15, 2008, 7:32 am
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 On Jan 14, 9:46 pm, learning.account...@gmail.com wrote:
> I'm a beginner at Accounting, but I am trying to learn.
>
> I am confused on how CHK is reporting its dividends on its latest 10-K
> filing. What I am seeing is up to 3 different numbers reported for
> dividends (3 for preferred, 2 for common). I'm sure there is a simple
> explanation, but I am at a loss. Any help? Any reasons why the
> dividends would be reported differently on different statements?
>
> Preferred Dividends, as reported on year ending Dec. 31, 2006:
> - Income Statement $(88.645,000)
> - Statement of Cash Flow (Financing) $(88,424,000)
> - Statement of Stockholders Equity (Retained Earnings) $(94,633,000)
>
> Common Dividends, as reported on year ending Dec. 31, 2006:
> - Statement of Cash Flow (Financing) $(87,008,000)
> - Statement of Stockholders Equity (Retained Earnings) $(95,809,000)
>
> Source:http://www.sec.gov/Archives/edgar/data/895126/000119312507043979/0001...

one explanation could be the exchange of preferred for common during
the year and the issuance of new preferred stock






Posted by learning.accounting on January 15, 2008, 10:13 pm
Please log in for more thread options
> On Jan 14, 9:46 pm, learning.account...@gmail.com wrote:
>
>
>
>
>
> > I'm a beginner at Accounting, but I am trying to learn.
>
> > I am confused on how CHK is reporting its dividends on its latest 10-K
> > filing. =A0What I am seeing is up to 3 different numbers reported for
> > dividends (3 for preferred, 2 for common). =A0I'm sure there is a simple=

> > explanation, but I am at a loss. =A0Any help? =A0Any reasons why the
> > dividends would be reported differently on different statements?
>
> > Preferred Dividends, as reported on year ending Dec. 31, 2006:
> > - =A0 =A0 =A0 Income Statement =A0 =A0 =A0 =A0$(88.645,000)
> > - =A0 =A0 =A0 Statement of Cash Flow (Financing) =A0 =A0$(88,424,000)
> > - =A0 =A0 =A0 Statement of Stockholders Equity (Retained Earnings) =A0 =
=A0$(94,633,000)
>
> > Common Dividends, as reported on year ending Dec. 31, 2006:
> > - =A0 =A0 =A0 Statement of Cash Flow (Financing) =A0 =A0$(87,008,000)
> > - =A0 =A0 =A0 Statement of Stockholders Equity (Retained Earnings) =A0 =
=A0$(95,809,000)
>
> > Source:http://www.sec.gov/Archives/edgar/data/895126/000119312507043979/=
0001...
>
> one explanation could be the exchange of preferred for common during
> the year and the issuance of new preferred stock- Hide quoted text -
>
> - Show quoted text -

Thanks for the reply! That would make sense, and older CHK 10-K's do
in fact have entries in the Statement of Stockholder's Equity -
Retained Earnings for such adjustments.

I believe I have figured out what is going on. One thing I didn't
consider is Dividends Payable ... CHK, in its 10-K's, lists its
specific Dividends Payable amount going back to 2002 (no mention of
dividends payable before 12/31/2002 year-end). Sure enough, this
accounts for the difference in dividends as reported in the Statement
of Cash Flow from the amount as reported in the Statement of
Stockholders Equity.

I'm still not certain as to why the Preferred dividends are listed as
a slightly different amount in the Income Statement, however, but for
most years past the difference is negligible.


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