ch15 - 15-11.Forms of business organization -...

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Unformatted text preview: 15-11.Forms of business organization - corporate.2.Key components of stockholders equity.3.Accounting procedures for issuing shares of stock.4.Accounting for treasury stock.5.Accounting for and reporting of preferred stock.6.Policies used in distributing dividends.7.Identify the various forms of dividend distributions.8.Presentation and analysis of stockholders equity.Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives15-2Three primary forms of business organizationThe Corporate Form of OrganizationThe Corporate Form of OrganizationThe Corporate Form of OrganizationThe Corporate Form of OrganizationProprietorshipPartnershipCorporationLO 1 Discuss the characteristics of the corporate form of organization.Special characteristics of the corporate form:1.Influence of state corporate law.2.Use of capital stock or share system.3.Development of a variety of ownership interests.15-3State Corporate LawThe Corporate Form of OrganizationThe Corporate Form of OrganizationThe Corporate Form of OrganizationThe Corporate Form of OrganizationLO 1 Discuss the characteristics of the corporate form of organization.Corporation must submit articles of incorporationto the state in which incorporation is desired.General Motors- incorporated in Delaware.U.S. Steel- incorporated in New Jersey.Accounting for stockholders equity follows the provisions of each states business incorporation act. 15-4Capital Stock or Share SystemThe Corporate Form of OrganizationThe Corporate Form of OrganizationThe Corporate Form of OrganizationThe Corporate Form of OrganizationLO 1 Discuss the characteristics of the corporate form of organization.In the absence of restrictive provisions, each share carries the following rights:1.To share proportionately in profits and losses.2.To share proportionately in management (the right to vote for directors).3.To share proportionately in assets upon liquidation.4.To share proportionately in any new issues of stock of the same classcalled the preemptive right.15-5Variety of Ownership InterestsThe Corporate Form of OrganizationThe Corporate Form of OrganizationThe Corporate Form of OrganizationThe Corporate Form of OrganizationLO 1 Discuss the characteristics of the corporate form of organization.Common stock represent the residual corporate interest.Bears ultimate risks of loss.Receives the benefits of success.Not guaranteed dividends nor assets upon dissolution.Preferred stockis created by contract, when stockholders sacrifice certain rights in return for other rights or privileges, usually dividend preference. 15-6Contributed Contributed CapitalCapitalContributed Contributed CapitalCapitalRetained EarningsRetained EarningsAccountAccountRetained EarningsRetained EarningsAccountAccountAdditional Paid-in Additional Paid-in CapitalCapitalAccountAccountAdditional Paid-in Additional Paid-in CapitalCapitalAccountAccountLess:Less:Treasury StockTreasury StockAccountLess:Less:Treasury StockTreasury StockAccount...
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ch15 - 15-11.Forms of business organization -...

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