Chapter 13

Chapter 13 - ACCOUNTING FOR CORPORATIONS Chapter 13...

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

View Full Document Right Arrow Icon
ACCOUNTING FOR CORPORATIONS Chapter 13
Background image of page 1

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

View Full DocumentRight Arrow Icon
McGraw-Hill/Irwin Slide 2 Privately Held Privately Held Publicly Held Publicly Held Ownership can be CORPORATE FORM OF ORGANIZATION Existence is separate from owners Existence is separate from owners An entity created by law An entity created by law Has rights and privileges Has rights and privileges
Background image of page 2
McGraw-Hill/Irwin Slide 3 REPORTING OWNERSHIP EQUITY IN THE BALANCE SHEET Owner's equity: Jill Jones, capital 8,000 $ Sole Proprietorships Sole Proprietorships Partners' equity Jill Jones, capital 4,000 $ Bill Jones, capital 4,000 Total partners' equity 8,000 $ Partnerships Partnerships Owners' equity Capital stock 7,000 $ Retained earnings 1,000 Total stockholders' equity 8,000 $ Corporations Corporations
Background image of page 3

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

View Full DocumentRight Arrow Icon
McGraw-Hill/Irwin Slide 4 P a i d - i n C a p i t a l C o n t r i b u t i o n s b y i n v e s t o r s i n e x c h a n g e f o r c a p i t a l s t o c k . R e t a i n e d E a r n i n g s R e t e n t i o n o f p r o f i t s e a r n e d b y t h e c o r p o r a t i o n . S t o c k h o l d e r s ' e q u i t y i s i n c r e a s e d i n t w o w a y s . STOCKHOLDERS’ EQUITY OF A CORPORATION
Background image of page 4
McGraw-Hill/Irwin Slide 5 STOCKHOLDERS’ EQUITY OF A CORPORATION Paid-in Capital = owners’ investment Retained Earnings: Beginning Retained Earnings + Revenues - Expenses - Dividends = Ending Retained Earnings
Background image of page 5

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

View Full DocumentRight Arrow Icon
McGraw-Hill/Irwin Slide 6 TYPES OF CAPITAL STOCK Common Stocks -Basic residual ownership share in the corporation; Holders have the right to any residual value after the stated obligations are met and can vote on certain corporate issues. Preferred Stocks -General term for a class of (usually nonvoting) stock. These stocks have different rights and/or preference than common stocks.
Background image of page 6
McGraw-Hill/Irwin Slide 7 The maximum number of shares of capital stock that can be sold to the public. Authorized Shares AUTHORIZATION AND ISSUANCE OF CAPITAL STOCK
Background image of page 7

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

View Full DocumentRight Arrow Icon
McGraw-Hill/Irwin Slide 8 Issued shares are authorized shares of stock that have been sold. Unissued shares are authorized shares of stock that never have been sold. Usually shares are sold through an underwriter. Usually shares are sold through an underwriter. Authorized Shares AUTHORIZATION AND ISSUANCE OF CAPITAL STOCK
Background image of page 8
McGraw-Hill/Irwin Slide 9 Unissued Shares Treasury Shares Outstanding Shares Treasury shares are issued shares that have been reacquired by the corporation. Issued Shares Issued Shares Outstanding shares are issued shares that are owned by stockholders. Authorized Shares AUTHORIZATION AND ISSUANCE OF CAPITAL STOCK
Background image of page 9

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

View Full DocumentRight Arrow Icon
McGraw-Hill/Irwin Slide 10 Common stock can be issued in three forms: Common stock can be issued in three forms: No-Par Common Stock No-Par Common Stock Par Value Common Stock Par Value Common Stock Stated Value Common Stock Stated Value Common Stock All proceeds credited to Common Stock All proceeds credited to Common Stock Treated like par value common stock Treated like par value common stock BASICS OF CAPITAL STOCK Let’s examine this form of stock.
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 40

Chapter 13 - ACCOUNTING FOR CORPORATIONS Chapter 13...

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