{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 11 - 11 Corporations Organization Stock...

Info icon This preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
11-1 Corporations: Organization, Stock Transactions, and Dividends 11 Student Version
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
11-2 Describe the nature of the corporate form of organization. 1 11-2
Image of page 2
11-3 A corporation has separate legal existence from its owners. A corporation has transferable units of ownership. A corporation has limited stockholders’ liability. 1 Characteristics of a Corporation
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
11-4 Costs may be incurred in organizing a corporation. The recording of a corporation’s organizing costs of $8,500 on January 5 is shown below: 1
Image of page 4
11-5 Describe the two main sources of stockholders’ equity. 2
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
11-6 The two sources of capital are: 1. Capital contributed to the corporation by the stockholders, called paid-in capital or contributed capital . 1. Net income retained in the business, called retained earnings. 2
Image of page 6
11-7 Stockholders’ Equity Section of a Corporate Balance Sheet Stockholders’ Equity Paid-in capital: Common stock $330,000 Retained earnings 80,000 Total stockholders’ equity $410,000 If there is only one class of stock, the account is entitled Common Stock or Capital Stock . 2
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
11-8 Describe and illustrate the characteristics of stock, classes of stock, and entries for issuing stock. 3
Image of page 8
11-9 Characteristics of Stock The number of shares of stock that a corporation is authorized to issue is stated in the charter. A corporation may reacquire some of the stock that has been issued. The stock remaining in the hands of stockholders is then called outstanding stock . 3
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
11-10 Shares of stock are often assigned a monetary amount, called par . Corporations may issue stock certificates to stockholders to document their ownership. Some corporations have stopped issuing stock certificates except on special request.
Image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern