What is the difference between a distribution and a dividend? Distributions are payments of profits from a company’s shares to its shareholders. Dividends are payments of profits from a company’s shares to its shareholders that are declared by the company’s board of directors.
Journal Entry with a WithDraw / Shareholder Distribution / Accounting for beginners #137[ytvideo]
Different types of distributions
Different types of distributions can be log-normal, normal, triangular, or symmetric.
Log-normal distributions are most commonly found in physics and economics. They are named after the logarithm of the probability density, which is normally distributed. This type of distribution is symmetrical and has a bell-shaped curve.
Normal distributions are found in biology, medicine, finance, and statistics. They are named after the normal curve, which is a plot of probability density against the square root of the scale. This type of distribution is symmetrical and has a bell-shaped curve.
Triangular distributions are found in chemistry and physics. They are named after the triangular curve, which is a plot of the concentration of a substance against time. This type of distribution is asymmetrical and has a stars-on-a-diamond shape.
Symmetric distributions are found in mathematics and computer science. They are named after the mathematical symmetry of the probability density, which is a property of certain distributions. This type of distribution is symmetrical and has a bell-shaped curve.
How to journalize a distribution
Journalizing a distribution can seem like a daunting task, but it doesn’t have to be. Follow these easy tips to ensure a flawless distribution.
1. Plan your distribution thoroughly. Make sure you have an accurate count of how many units you will be distributing and what format they will be in. This will help you plan the layout and design of your packet.
2. Design your packet meticulously. Make sure the layout is eye-catching and that all components are easily accessible. You don’t want your recipients to struggle to open your packet!
3. Keep your distribution concise. Don’t waste space with extraneous information. Keep your distribution to the point, and make sure all information is clearly written and easy to understand.
4. Make sure your distribution is timely. Keep in mind that your recipients will want your packet as soon as possible. Be sure to send it out on time, and make sure your packaging is sturdy so that it doesn’t get damaged during shipping.
What to include in a distribution journal entry
When distributing a journal, it is important to keep track of who has received what. This is especially important when journaling a collaborative project. The following journal entry includes a list of recipients, a brief description of what each person received, and a note about the distribution.
To: Jasmine, Rachel, and Emily
Subject: Journal Distribution
Here is the journal distribution for the project we worked on together. I hope you all enjoy it.
Jasmine, Rachel, and Emily received copies of the journal with write-ups about each article.
Jason received a copy of the journal, with a write-up about himself.
Examples of distributions
“I’m writing to let you know about the distribution for the software you recommended.
The software is available at www.site.com for $49.99.
The distribution includes a 30 day trial and full support.
If you’re interested, please visit www.site.com and click on the “Order Now” button.
Thank you for your recommendation.
This is a professional email that explains the distribution for a software recommendation and also includes a link to the software. This email is clever, witty, and professional.
How distributions affect the financial statements
When a company distributes dividends, the shares of common stock and the number of outstanding shares change. The equation below explains this:
= (Number of shares outstanding – (Number of shares granted – (Number of shares voted – (Number of shares withheld))
If a company decides to distribute dividends, they will pass on the funds to their shareholders in the form of cash, new shares of common stock, or both.
When a company distributes cash, the total cash and cash equivalents (money that is held in bank accounts, certificates of deposit, and other similar investments) will decrease. The equation below explains this:
= Cash and cash equivalents
When a company distributes new shares of common stock, the total number of shares outstanding will increase. The equation below explains this:
= (Number of shares outstanding – (Number of shares granted – (Number of shares voted – (Number of shares withheld)))
When a company distributes shares for the first time, the total number of shares outstanding will be (Number of shares granted – (Number of shares voted – (Number of shares withheld))) +
- The equation below explains this:
= (Number of shares outstanding + 1)
When a company distributes shares for the second time, the total number of shares outstanding will be (Number of shares granted – (Number of shares voted – (Number of shares withheld))) +
- The equation below explains this:
The aim of this post is to provide an example of how to generate a journal entry for a distribution. This journal entry will record the details of the distribution, including the amount of income and expenses generated. The journal entry should be formatted as follows:
The net income shown in this journal entry was $2,000.