Chapter_13_Corporati - 13 Corporations Organization Stock Transactions and Dividends Student Version 11-1 13 1 Describe the nature of the corporate

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11-1 13-1 Corporations: Organization, Stock Transactions, and Dividends 13 Student Version
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11-2 13-2 Describe the nature of the corporate form of organization. 1 13-2
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11-3 13-3 Characteristics of a Corporation A corporation is a legal entity, distinct and separate from the individuals who create and operate it. As a legal entity, a corporation may acquire, own, and dispose of property in its own name. 1
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11-4 13-4 Costs may be incurred in organizing a corporation. The recording of a corporation’s organizing costs of $8,500 on January 5 is shown below: 1 Forming a Corporation
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11-5 13-5 Describe the two main sources of stockholders’ equity. 2 13-5
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11-6 13-6 The two sources of capital are: 1. Capital contributed to the corporation by the stockholders, called paid-in capital or contributed capital . 2. Net income retained in the business, called retained earnings . 2
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11-7 13-7 Stockholders’ Equity Section of a Corporate Balance Sheet Stockholders’ Equity Paid-in capital: Common stock $330,000 Retained earnings 80,000 Total stockholders’ equity $410,000 If there is only one class of stock, the account is entitled Common Stock or Capital Stock . 2
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11-8 13-8 Describe and illustrate the characteristics of stock, classes of stock, and entries for issuing stock. 3 13-8
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11-9 13-9 Characteristics of Stock The number of shares of stock that a corporation is authorized to issue is stated in the charter. A corporation may reacquire some of the stock that has been issued. The stock remaining in the hands of stockholders is then called outstanding stock . 3
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11-10 13-10 Shares of stock are often assigned a monetary amount, called par . Corporations may issue stock certificates to stockholders to document their ownership. Some corporations have stopped issuing stock certificates except on special request.
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This note was uploaded on 03/26/2012 for the course ACCOUNTING 1A,1B,1C taught by Professor Spinozzi during the Summer '10 term at DeAnza College.

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Chapter_13_Corporati - 13 Corporations Organization Stock Transactions and Dividends Student Version 11-1 13 1 Describe the nature of the corporate

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