Conceptual objectives:

1. Identify characteristics of corporations and their organization.
2. Explain characteristics of, and distribute dividends between, common and preferred stock.
3. Explain the items reported in retained earnings.

Analytical objectives:

1. Compute earnings per share and describe its use.
2. Compute price-earnings ratio and describe its use in analysis.
3. Compute dividend yield and explain its use in analysis.
4. Compute book value and explain its use in analysis.

Procedural objectives:

1. Record the issuance of corporate stock.
2. Record transactions involving cash dividends, stock dividends, and stock splits.
3. Record purchases and sales of treasury stock and the retirement of stock.