mba会计教材chap11~1

Click to edit Master title style,Click to edit Master text styles,Second Level,?The McGraw-Hill Companies,Inc.,1999,Slide,11-,1,Irwin/McGraw-Hill,Chapter 11,Stockholders?Equity:Paid-in Capital,Corporations,Existenceisseparatefromowners.,Anentitycreatedbylaw.,Hasrightsandprivileges.,Privately,orClosely,Held,Publicly Held,Ownershipcanbe,WhyBusinessesIncorporate,Stockholdershavenopersonalliability.,Privately,orCloselyHeld,Publicly Held,Transferabilityofownership.,Professionalmanagement.,Continuityofexistence.,Disclosefinancialinformation.,FinancialstatementspreparedinaccordancewithGAAP.,CPAsmustauditthefinancialstatements.,Mustcomplywithfederalsecuritieslaws.,Mustsubmitfinancial information for SEC review.,PubliclyOwned CorporationsfaceDifferent Rules,Rights of Stockholders,Stockholders,Rights,Voting(in person or by,proxy,).,Proportionate distribution of,dividends,.,Proportionate distribution of assets in a liquidation.,Rights of Stockholders,Ultimate control,Stockholders usually meet once a year.,Rights of Stockholders,Stockholderledgersareoften maintainedbya stocktransferagent or stockregistrar.,Eachunit ofownership is calledashare ofstock.,Astock certificateserves as proofthata stockholder has purchasedshares.,Rights of Stockholders,Whenthestockis sold,thestockholdersigns atransfer endorsement ontheback ofthestock certificate.,Rights of Stockholders,Functions oftheBoard of Directors,Overallresponsibility for managingthecompany.,Selected by a vote of thestockholders,Functionsof the Corporate Officers,ChiefAccountant,Contractual andlegal representation,Custodianof funds,Authorization and Issuance ofCapital Stock,The maximum number of shares of capitalstockthatcanbe sold tothepublic.,Authorized,Shares,Authorized,Shares,Issued sharesare authorizedshares ofstockthathavebeensold.,Unissued sharesare authorizedshares ofstockthatnever have been sold.,Usually sharesare sold through anunderwriter.,Authorization and Issuance ofCapital Stock,Unissued,Shares,Treasury,Shares,Outstanding,Shares,Treasury sharesare issuedshares that have been reacquired by thecorporation.,Issued,Shares,Outstanding sharesareissued shares that are owned by stockholders.,Authorized,Shares,Authorization and Issuance ofCapital Stock,Paid-In Capitalof aCorporation,Par valueis anarbitraryamount assigned toeachshareof stockwhenit isauthorized.,Market priceis the amount that each shareof stock will sell for inthemarket.,Stockholders?Equity,Common stock can beissued inthreeforms:,No-Par Common Stock,Par ValueCommon Stock,Stated Value CommonStock,Let抯examine this form ofstock.,Stockholders?Equity,Issuance of ParValue Stock,Prepare the journalentryto recordan issuance of10,000 sharesof$2parvaluestock for$25per sharewhichoccurredon September 1,1999.,Record:,The cash received.,The numberof sharesissued?the par value per share intheCommon Stockaccount.,The remainder is assignedtoContributed Capitalin Excessof Par.,Issuance of ParValue Stock,The journal entry torecord anissuanceof 10,000shares of$2 par value stock for$25 pershare onSeptember1,1999 shouldinclude acredit tocommon stock for theparvalueof the sharesissued.,Issuance of ParValue Stock,Common stock can beissued inthreeforms:,No-Par Common Stock,Par ValueCommon Stock,Stated Value CommonStock,Stockholders?Equity,All proceeds credited toCommon Stock,Treated like par value commonstock,PreferredStock,A separateclass ofstock,typically having priority over commonshares in.,Dividend distributions.,Distribution ofassets incaseof liquidation.,Usually has a stated dividend rate.,Normally has no voting rights.,Usually callable by the company.,CumulativePreferredStock,Vs.,Noncumulative,Cumulative,Dividendsin arrearsmustbe paid beforedividendsmay be paid oncommon stock.,Undeclareddividendsfromcurrent and prior yearsdo not have tobe paid infuture years.,StockPreferredas to Dividends,Example:Consider the following partialStatementof Stockholders?Equity.,During 1999,the directors declarecashdividendsof$5,000.Inyear2000,thedirectorsdeclare cash dividends of$42,000.,StockPreferredastoDividends,ConvertiblePreferredStock,Ijustconverted100sharesofpreferredstockinto1,000sharesofcommonstockandendedupwithahigherdividendyield!,Gee,Ican,ntdothatwithmypreferredstock.,Somepreferredstockisconvertibleintosharesofcommonstock.,PreferredStock,StockIssuedforAssetsOtherThanCash,Companiessometimesissuestockinexchangefornon-cashassets.,Recordthetransactionatthemarketvalueofthegoodsorservicesreceived.,Ilovethisstuff!,Canwedosomemore?,MarketValue,Accountingbytheissuer.,Accountingbytheinvester.,Commonstockiscarriedatoriginalissueprice.,Investmentsinmarketablesecuritiesarecarriedatmarketvalue.,MarketPriceofPreferredStock,Factorsaffectingmarketpriceofpreferredstock:,Dividendrate,Risk,Levelofinterestrates,Thereturnbasedonthemarketvalueiscalledthe,揹,揹ividendyield?,MarketPriceofCommonStock,Factorsaffectingmarketpriceofcommonstock:,Investors?expectationsoffutureprofitability.,Riskthatthislevelofprofitabilitywillnotbeachieved.,Changesinmarketva