1 - Stockholders Equity Chapter 9 Learning Objective 1...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Stockholders’ Equity Chapter 9 Learning Objective 1 Explain the features of a corporation Characteristics of a Corporation Organizing a Corporation 0. Incorporators 0. Organize the corporation 1. Pay fees 2. Sign charter 3. File documents with the state 4. Agree to bylaws Authority Structure in a Corporation Stockholders’ Rights 1. Vote at stockholder meetings 2. Receive dividends 3. Receive share if corporation liquidates 4. Maintain proportionate ownership 5. Preemptive right Parts of Stockholders’ Equity 5. Paid-in capital 6. Represents amounts contributed by stockholders 7. Include stock accounts 6. Retained earnings 8. Amounts earned and kept by the corporation Classes of Stock Common 0. Basic form of common stock 1. Have rights of ownership 2. Benefit most of company succeeds 3. Risk most if company does not succeed Classes of Stock Par value
Background image of page 1

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

View Full DocumentRight Arrow Icon
4. Arbitrary amount assigned to share of stock 5. In most states, represents minimum price for shares 0. Legal capital Learning Objective 2 Account for the issuance of stock Issuing Common Stock at Par 6. A company issues 100,000 shares of $5 par value common stock at par 7. The common stock account is always credited in the amount of the shares issued multiplied by par value Issuing Common Stock Above Par 8. A company issues $100,000 shares of $5 par value stock for $12 per share 9. The amount above par is credited to Paid-in Capital in Excess of Par Issuing Common Stock for Noncash Assets 0. Assets recorded at their fair values 1. Common stock and paid-in capital credited accordingly
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/14/2011 for the course ACCOUNTING 23020 taught by Professor Na during the Spring '11 term at Kent State.

Page1 / 7

1 - Stockholders Equity Chapter 9 Learning Objective 1...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online