Chapter 11 - stock Market value whatever value that is on...

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Chapter 11 On the test Properitorships Partnership Corporations One owner two or more investors Limited life limited life unlimited life Unlimited liability unlimited liability limited liability Ability to raise capital 1. Debt financing 2. Equity financing Corporations Double taxation Transfer ownership by buying stocks Starting a corporation you file at the state level Board of directors 1. Choose management 2. Stockholders Common stock – the most frequently issued class of stock typically provides a voting right but is secondary to preferred stock in dividends and liquation rights Preferred stock – a class of stock that usually provides dividend and liquidation preferences over common stock Par value – a nominal value assigned to and printed on the face of each share of a corporation’s
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Unformatted text preview: stock Market value whatever value that is on the market P.515 Treasury stock method issued stock that has subsequently been reacquired by the corporation p.517 mutiply choice questions retained earnings debit(-) credit(+) loss income P.518 cash dividends When the boards of directors declare dividends, the company has a liability Accounting for cash dividends 1. declaration date Journal Entry debit divdends (preferred first then common stock) 10000 credit divdends payable 10000 2. date of record no journal entry 3. payment date journal entry debit dividends payable 10000 credit cash 10000 Closing dividends to retained earnings Debit retained earnings Credit both dividends...
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Chapter 11 - stock Market value whatever value that is on...

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