ACC15Chapt11

ACC15Chapt11 - Chapter 11: Accounting for Equity...

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Chapter 11: Accounting for Equity Characteristics of Coperations Advantages o Separate legal entity (represent itself in law/make its own decisions) o Limited liability of stockholders (cannot go after personal assets) o Transferable ownership rights (easy transference of stock) o Ease of capital accumulation (issue more stock) o Continuous life Disadvantages o Government regulation o Corporate Taxation (double tax penalty= income tax at high rate and then dividends to share holders but dividends are NOT an expense and don’t go on the income statement = no deduction, dividend tax paid by shareholders) Organizing and Managing a Corporation Board of Directors has hire and fire power = 1 vote for 1 share to elect board of directors Basics of Capital Stock Classes of Stock There will ALWAYS BE a par value for the stock Issuing Par Value Stock On September 1, Matrix Inc. issued 100,000 shares to $2 par value stock for $25 per share.
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This note was uploaded on 02/22/2012 for the course ACC 151 taught by Professor Franklin during the Fall '08 term at Syracuse.

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ACC15Chapt11 - Chapter 11: Accounting for Equity...

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