Student Notes, Equity(18)

Large stock dividend and the company transfers the

Info icon This preview shows pages 33–42. Sign up to view the full content.

View Full Document Right Arrow Icon
large stock dividend, and the company transfers the  par value  from  retained earnings. Types of Dividends Types of Dividends Types of Dividends Types of Dividends
Image of page 33

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

View Full Document Right Arrow Icon
Chapter 18-34 10% stock dividend is declared Debit Credit Stock issued Illustration HH Inc. has 5,000 shares issued and outstanding. The per share par value is $1, book value $32 and market value is $40. Stock Dividend Stock Dividend Stock Dividend Stock Dividend
Image of page 34
Chapter 18-35 Illustration HH Inc. has 5,000 shares issued and outstanding. The per share par value is $1, book value $32 and market value is $40. On March 10, the company declares a 50% stock dividend. Stock Dividend Stock Dividend Stock Dividend Stock Dividend
Image of page 35

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

View Full Document Right Arrow Icon
Chapter 18-36 Stock Split To reduce the market value of shares. No entry recorded for a stock split. Decrease par value and increased number of shares. To signal future perfornace Types of Dividends Types of Dividends Types of Dividends Types of Dividends
Image of page 36
Chapter 18-37 2 for 1 Stock Split Stock Split Stock Split Stock Split Stock Split Illustration HH Inc. has 5,000 shares issued and outstanding. The per share par value is $1, book value $32 and market value is $40.
Image of page 37

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

View Full Document Right Arrow Icon
Chapter 18-38 Presentation and Analysis of Stockholders’ Presentation and Analysis of Stockholders’ Equity Equity Presentation and Analysis of Stockholders’ Presentation and Analysis of Stockholders’ Equity Equity Presentation Balance Sheet
Image of page 38
Chapter 18-39 Presentation and Analysis of Stockholders’ Presentation and Analysis of Stockholders’ Equity Equity Presentation and Analysis of Stockholders’ Presentation and Analysis of Stockholders’ Equity Equity Presentation Statement of Stockholders’ Equity
Image of page 39

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

View Full Document Right Arrow Icon
Chapter 18-40 Preferred stock normally is Preferred stock normally is reported as equity, but is reported as equity, but is reported as debt with the reported as debt with the dividends reported in the dividends reported in the income statement as income statement as interest expense if it is interest expense if it is “mandatorily redeemable” “mandatorily redeemable” preferred stock. preferred stock. Most non-mandatorily Most non-mandatorily redeemable preferred stock redeemable preferred stock (preference shares) also is (preference shares) also is reported as debt as well as some preference shares that some preference shares that aren’t redeemable. Under IFRS aren’t redeemable. Under IFRS ( IAS No. 32 IAS No. 32 ), the critical feature ), the critical feature that distinguishes a liability is if the issuer is or can be required the issuer is or can be required to deliver cash (or another to deliver cash (or another financial instrument) to the financial instrument) to the holder holder . Distinction between Debt and Equity for Preferred Stock US GAAP and IFRS US GAAP and IFRS US GAAP and IFRS US GAAP and IFRS
Image of page 40
Chapter 18-41 Accumulated other Accumulated other comprehensive income: comprehensive income: Net gains (losses) on Net gains (losses) on investment investment ― AOCI.
Image of page 41

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

View Full Document Right Arrow Icon
Image of page 42
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern