所有者权益ch11Stockholders_39;Equity

单击此处编辑母版标题样式,单击此处编辑母版标题样式,Stockholders Equity,Chapter 11,Intermediate Accounting,12thEdition,Kieso,Weygandt,andWarfield,Identify the key components ofstockholdersequity.,Explain the accounting for issuingshares ofstock.,Describe the accounting for treasury stock.,Explain the accounting for preferred stock.,Identify the variousforms ofdividend distributions.,Explain the accounting for small and large stock dividends,and for stock splits.,Learning Objectives,Issuance of stock,Reacquisition of shares,The Corporate Form,CorporateCapital,PreferredStock,Dividend Policy,Capital stock or share system,Variety ofownershipinterests,Features,Accountingforpreferredstock,dividend distributions,Typesof dividends,Stocksplit,Stockholders Equity,Threeprimary formsof business organization,The Corporate Form of Organization,Proprietorship,Partnership,Corporation,Special characteristics of thecorporateform:,Influenceof state corporate law.,Use of capitalstockor sharesystem.,Development ofa varietyof ownership interests.,StateCorporateLaw,Corporation must submitarticles of incorporationto the state inwhich incorporationis desired.,General Motors-incorporated in Delaware.,U.S.Steel-incorporated in NewJersey.,Capital Stock or Share System,In the absenceof restrictiveprovisions,each share carriesthefollowingrights:,To share proportionatelyin profitsandlosses.,To share proportionatelyin management(the rightto vote for directors).,To share proportionatelyin assetsuponliquidation.,To share proportionatelyin any newissues ofstock ofthe same classcalled thepreemptiveright.,Variety ofOwnershipInterests,Common stock represents basicownershipinterest.,Bearsultimaterisksof loss.,Receives the benefits ofsuccess.,Not guaranteeddividendsnor assetsupondissolution.,Preferredstockis createdby contract,when stockholders sacrifice certainrights inreturn for other rightsor privileges,usually dividend preference.,Contributed Capital,Retained Earnings,Account,AdditionalPaid-in Capital,Account,Less:,Treasury Stock,Account,Two Primary Sourcesof Equity,CorporateCapital,Common Stock,Account,PreferredStock,Account,Assets Liabilities=Equity,Issuance of Stock,Accountingproblems:,Par valuestock.,No-par stock.,Stockissued with other securities.,Stockissued innoncash transactions.,Costsof issuing stock.,Shares authorized-Shares sold-Sharesissued,Par ValueStock,Corporations maintain accountsfor:,PreferredStockor CommonStock.,AdditionalPaid-in Capital,BE15-1:Lost VikingsCorporation issued300 sharesof$10 par value commonstockfor$4,100.Prepare Lost Vikingsjournal entry.,Cash4,100,Common stock (300 x$10)3,000,Additionalpaid-in capital1,100,No-ParStock,Reasonsforissuance:,Avoidscontingentliability.,Avoidsconfusionoverrecordingparvalueversusfairmarketvalue.,Somestatesrequirethatno-parstockhaveastatedvalue.,BE15-2:ShinobiCorporationissued600sharesofno-parcommonstockfor$10,200.PrepareShinobi,sjournalentryif(a)thestockhasnostatedvalue,and(b)thestockhasastatedvalueof$2pershare.,Cash10,200,Commonstock10,200,Journalentry:,Cash10,200,Commonstock,(600 x$2),1,200,Additionalpaid-incapital9,000,a.,b.,StockIssuedwithOtherSecurities,Twomethodsofallocatingproceeds:,theproportionalmethodand,theincrementalmethod.,BE15-4:PrimalRageCorporationissued300sharesof$10parvaluecommonstockand100sharesof$50parvaluepreferredstockforalumpsumof$14,200.Thecommonstockhasamarketvalueof$20pershare,andthepreferredstockhasamarketvalueof$90pershare.,Cash14,200,Preferredstock(100 x$50)5,000,Additionalpaid-incapital-preferred3,520,Commonstock(300 x$10)3,000,Additionalpaid-incapital-common2,680,Proportional,Method,BE15-4:(Variation)PrimalRageCorporationissued300sharesof$10parvaluecommonstockand100sharesof$50parvaluepreferredstockforalumpsumof$14,200.Thecommonstockhasamarketvalueof$20pershare,andthevalueofthepreferredstockisunknown.,Cash14,200,Preferredstock,(100 x$50),5,000,Journalentry(Incremental):,Additionalpaid-incapital-preferred3,200,Commonstock,(300 x$10),3,000,Additionalpaid-incapital-common3,000,Incremental,Method,StockIssuedinNoncashTransactions,Thegeneralrule:Companiesshouldrecordstockissuedforservicesorpropertyotherthancashateitherthe:,fairvalueofthestockissuedor,fairvalueofthenoncashconsiderationreceived,whicheverismoreclearlydeterminable.,Land80,000,Commonstock,(24,000 x$1),24,000,April1Issued24,000sharesofcommonstockforland.Theaskingpriceofthelandwas$90,000;thefairmarketvalueofthelandwas$80,000.,Additionalpaid-incapital56,000,E15-2:KathleenBattleCorporationwasorganizedonJanuary1,2007.Itisauthorizedtoissue500,000sharesofnoparcommonstockwithastatedvalueof$1pershare.,Organizationexpense50,000,Commonstock,(10,000 x$1),10,000,Aug.1Issued10,000sharesofcommonstocktoattorneysinpaymentoftheirbillof$50,000forservicesrenderedinhelpingthecompanyorganize.,Additionalpaid-incapital40,000,E15-2:KathleenBattleCorporationwasorganizedonJanuary1,2007.Itisauthorizedtoissue500,000sharesofnoparcommonstockwithastatedvalueof$1pershare.,CostsofIssuingStock,Directcostsincurredtosellstock,suchas,underwritingcosts,accoun