会计学(英文版)StockholdersEqui课件

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,Chapter 11Stockholders?Equity:,Corporations,Existence is separate from owners.,An entity created by law.,Has rights and privileges.,Privately,or Closely,Held,Publicly Held,Ownership can be,CorporationsExistence is separ,Why Businesses Incorporate,Stockholders have no personal liability.,Privately,or Closely Held,Publicly Held,Transferability of ownership.,Professional management.,Continuity of existence.,Why Businesses IncorporateStoc,Disclose financial information.,Financial statements prepared in accordance with GAAP.,CPAs must audit the financial statements.,Must comply with federal securities laws.,Must submit financial information for SEC review.,Publicly Owned Corporations face Different Rules,Disclose financial information,Rights of Stockholders,Stockholders,Rights,Voting(in person or by,proxy,).,Proportionate distribution of,dividends,.,Proportionate distribution of assets in a liquidation.,Rights of StockholdersStockhol,Rights of Stockholders,Ultimate control,Stockholders usually meet once a year.,Rights of StockholdersUltimate,Rights of Stockholders,Stockholder ledgers are often maintained by a stock transfer agent or stock registrar.,Rights of StockholdersStockhol,Each unit of ownership is called a,share of stock,.,A,stock certificate,serves as proof that a stockholder has purchased shares.,Rights of Stockholders,Each unit of ownership is call,When the,stock,is sold,the stockholder signs a transfer endorsement on the back of the,stock certificate,.,Rights of Stockholders,When the stock is sold,the st,Functions of the Board of Directors,Overall responsibility for managing the company.,Selected by a vote of the stockholders,Functions of the Board of Dire,Functions of the Corporate Officers,Chief Accountant,Contractual and legal representation,Custodian of funds,Functions of the Corporate Off,Authorization and Issuance of Capital Stock,The maximum number of shares of capital stock that can be sold to the public.,Authorized,Shares,Authorization and Issuance of,Authorized,Shares,Issued shares,are authorized shares of stock that have been sold.,Unissued shares,are authorized shares of stock that never have been sold.,Usually shares are sold through an underwriter.,Authorization and Issuance of Capital Stock,AuthorizedIssued shares are au,Unissued,Shares,Treasury,Shares,Outstanding,Shares,Treasury shares,are issued shares that have been reacquired by the corporation.,Issued,Shares,Outstanding shares,are issued shares that are owned by stockholders.,Authorized,Shares,Authorization and Issuance of Capital Stock,UnissuedTreasuryOutstandingTre,Paid-In Capital of a Corporation,Paid-In Capital of a Corporati,Par value,is an arbitrary amount assigned to each share of stock when it is authorized.,Market price,is the amount that each share of stock will sell for in the market.,Stockholders?Equity,Par value is an arbitrary amou,Common stock can be issued in three forms:,No-Par Common Stock,Par Value Common Stock,Stated Value Common Stock,Let抯 examine this form of stock.,Stockholders?Equity,Common stock can be issued in,Issuance of Par Value Stock,Prepare the journal entry to record an issuance of 10,000 shares of$2 par value stock for$25 per share which occurred on September 1,1999.,Record:,The cash received.,The number of shares issued?the par value per share in the,Common Stock,account.,The remainder is assigned to,Contributed Capital in Excess of Par,.,Issuance of Par Value StockPre,Issuance of Par Value Stock,The journal entry to record an issuance of 10,000 shares of$2 par value stock for$25 per share on September 1,1999 should include a credit to common stock for the par value of the shares issued.,Issuance of Par Value StockThe,Issuance of Par Value Stock,Issuance of Par Value Stock,Common stock can be issued in three forms:,No-Par Common Stock,Par Value Common Stock,Stated Value Common Stock,Stockholders?Equity,All proceeds credited to Common Stock,Treated like par value common stock,Common stock can be issued in,Preferred Stock,A separate class of stock,typically having priority over common shares in.,Dividend distributions.,Distribution of assets in case of liquidation.,Usually has a stated dividend rate.,Normally has no voting rights.,Usually callable by the company.,Preferred StockA separate clas,Cumulative Preferred Stock,Vs.,Noncumulative,Cumulative,Dividends in arrears,must be paid before dividends may be paid on common stock.,Undeclared dividends from current and prior years do not have to be paid in future years.,Cumulative Preferred StockVs.N,Stock Preferred as to Dividends,Example:Consider the following partial Statement of Stockholders?Equity.,During 1999,the directors declare cash dividends of$5,000.In year 2000,the directors declare cash dividends of$42,000.,Stock Preferred as to Dividend,Stock Preferr