Ch 11 Reporting and Interpreting Stock holders

Ch 11 Reporting and - Note the impact of a Small stock dividend on Retained Earnings Common stock(par value Paid in capital in excess of par

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Ch 11 Reporting and Interpreting Stock holders’ Equity Types of Business Organization: Sole Proprietorships Partnerships Corporations Typical Organizational Structure f a Corporation Distinguish between: Authorized, Issued, Outstanding and Treasury stock Initial sale of stock (Primary market transaction Impact on Statement of Stockholders’ Equity and Statement of Cash Flows Sale in secondary markets Repurchases of stock (cost method) Treasury stock is a contra stockholders’ equity account Companies cannot create income statement gains and losses by repurchasing and issuing their own stock Impact of treasury stock transactions (purchase and subsequent reissue on Statement of Stockholders equity and Statement of Cash Flows Dividends Date of Declaration (Liability is created) Date of record Date of Payment Cash Dividends vs. Stock Dividends (Small stock dividends vs. large stock dividends)
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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.

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Ch 11 Reporting and - Note the impact of a Small stock dividend on Retained Earnings Common stock(par value Paid in capital in excess of par

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