Course Notes Chapter 15 _Equity_

Course Notes Chapter 15 _Equity_ - Chapter 15-1...

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

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 15-1 Stockholders Equity Stockholders Equity Chapter 15 Chapter 15-2 Three primary forms of business organization The Corporate Form of Organization The Corporate Form of Organization Proprietorship Partnership Corporation Why are there 3 forms (are there really more)? What determines which form is used? Chapter 15-3 Capital Stock or Share System The Corporate Form of Organization The Corporate Form of Organization In the absence of restrictive provisions, each share carries the following rights: 1. To share proportionately in ________ and _____. 2. To share proportionately in management (the right to vote for directors). 3. To share proportionately in ______upon liquidation. 4. To share proportionately in any new issues of stock of the same class called the ________________ . Chapter 15-4 Corporate Capital Corporate Capital Two ways to finance a company: _______ Cheaper (usually) Less forgiving ________ More expensive (usually) More forgiving Which industries use what type of financing? Why? Chapter 15-5 Shinobi Corporation issued 600 shares of no-par common stock for $10,200. Prepare Shinobis journal entry if (a) the stock has no stated value, and (b) the stock has a stated value of $2 per share. Journal entry: Corporate Capital Corporate Capital Chapter 15-6 Stock Issued with Other Securities Two methods of allocating proceeds: 1. the proportional method (based on ratio of market value) and 2. the incremental method (value the one, the rest goes to the other) Corporate Capital Corporate Capital Chapter 15-7 Primal Rage Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $14,200. The common stock has a market value of $20 per share, and the preferred stock has a market value of $90 per share. Corporate Capital Corporate Capital Chapter 15-8 Primal Rage Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $14,200. The common stock has a market value of $20 per share, and the preferred stock has a market value of $90 per share. Corporate Capital Corporate Capital Journal entry (Proportional): Chapter 15-9 ( ( Variation Variation ) ) Primal Rage Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $14,200. The common stock has a market value of $20 per share, and the value of the preferred stock is unknown . Corporate Capital Corporate Capital Chapter 15-10 Corporate Capital Corporate Capital Journal entry (Incremental): ( ( Variation Variation...
View Full Document

This note was uploaded on 08/22/2011 for the course ACIS 3116 taught by Professor Staff during the Spring '11 term at Virginia Tech.

Page1 / 44

Course Notes Chapter 15 _Equity_ - Chapter 15-1...

This preview shows document pages 1 - 11. Sign up to view the full document.

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