Confusion regarding Dividends

Jan 15, 2008 2 Replies
L

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)



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L

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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