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Unformatted text preview: Note the impact of a Small stock dividend on: Retained Earnings Common stock (par value) Paid in capital in excess of par Contributed Capital Stockholders’ Equity Note the impact of a Large stock dividend on: Retained Earnings Common stock (par value) Paid in capital in excess of par Contributed Capital Stockholders’ Equity Distinguish between stock dividends vs. stock splits 1 Preferred stock characteristics No voting rights Low risk Fixed rate of dividend Dividends on Preferred stock Cumulative vs. Non cumulative Preferred stock Undeclared dividends on Cumulative Preferred stock create dividends in arrears Dividends in arrears are NOT liabilities because they have not been declared Dividends in arrears are disclosed in the NOTES to the financial statements 2...
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This note was uploaded on 04/16/2011 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.
- Fall '08
- Treasury Stock