ACC231 Exam 4 Outline.docx - Exam 4 Outline Chapter 10 \u2013 Stockholder\u2019s Equity What does Stockholder\u2019s Equity represent in the Accounting Equation

ACC231 Exam 4 Outline.docx - Exam 4 Outline Chapter 10 –...

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Exam 4 Outline Chapter 10 – Stockholder’s Equity What does Stockholder’s Equity represent in the Accounting Equation? assets = liabilities + stockholder’s equity stockholders equity = assets - liabilities sometimes called the owner’s residual claim. The owners claim to assets. What are authorized vs issued vs outstanding shares? Authorized shares: # of shared authorized by the board of directors Issued shares: the # of shared that have been issued. Outstanding shares: issued shares - treasury shares What is the difference between Common Stock and Preferred Stock? common stock: represents ownership, preferred shareholders receive preference when dividends are paid. Record the sale of Stock for stock with and without Par Value Sold 1,000 shares of stock for $13 with a par value of $0.01. DR Cash $13,000 (1,000*13) CR Common Stock $10 (par value * shares, so .01*1000) CR Paid in Capital in excess of par $12,990 (($13-.01)*1,000) Sold 1,000 shares of no-par stock for $13 DR Cash $13,000 CR Common Stock $13,000 Record the payment of cash Dividends (J/E at date of Declaration vs Date of Record vs Date of Payment) Date of Declaration: DR Retained Earnings $XX CR Dividends payable $XX
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