会计学(英文版)StockholdersEqui课件

Chapter11Stockholders?Equity:Paid-inCapitalChapter11Stockholders?Equity:CorporationsExistenceisseparatefromowners.Anentitycreatedbylaw.Hasrightsandprivileges.Privately,orClosely,HeldPubliclyHeldOwnershipcanbeCorporationsExistenceisseparWhyBusinessesIncorporateStockholdershavenopersonalliability.Privately,orCloselyHeldPubliclyHeldTransferabilityofownership.Professionalmanagement.Continuityofexistence.WhyBusinessesIncorporateStocDisclosefinancialinformation.FinancialstatementspreparedinaccordancewithGAAP.CPAsmustauditthefinancialstatements.Mustcomplywithfederalsecuritieslaws.MustsubmitfinancialinformationforSECreview.PubliclyOwnedCorporationsfaceDifferentRulesDisclosefinancialinformationRightsofStockholdersStockholdersRightsVoting(inpersonorbyproxy).Proportionatedistributionofdividends.Proportionatedistributionofassetsinaliquidation.RightsofStockholdersStockholRightsofStockholdersUltimatecontrolStockholdersusuallymeetonceayear.RightsofStockholdersUltimateRightsofStockholdersStockholderledgersareoftenmaintainedbyastocktransferagentorstockregistrar.RightsofStockholdersStockholEachunitofownershipiscalledashareofstock.Astockcertificateservesasproofthatastockholderhaspurchasedshares.RightsofStockholdersEachunitofownershipiscallWhenthestockissold,thestockholdersignsatransferendorsementonthebackofthestockcertificate.RightsofStockholdersWhenthestockissold,thestFunctionsoftheBoardofDirectorsOverallresponsibilityformanagingthecompany.SelectedbyavoteofthestockholdersFunctionsoftheBoardofDireFunctionsoftheCorporateOfficersChiefAccountantContractualandlegalrepresentationCustodianoffundsFunctionsoftheCorporateOffAuthorizationandIssuanceofCapitalStockThemaximumnumberofsharesofcapitalstockthatcanbesoldtothepublic.AuthorizedSharesAuthorizationandIssuanceofAuthorizedSharesIssuedsharesareauthorizedsharesofstockthathavebeensold.Unissuedsharesareauthorizedsharesofstockthatneverhavebeensold.Usuallysharesaresoldthroughanunderwriter.AuthorizationandIssuanceofCapitalStockAuthorizedIssuedsharesareauUnissuedSharesTreasurySharesOutstandingSharesTreasurysharesareissuedsharesthathavebeenreacquiredbythecorporation.IssuedSharesOutstandingsharesareissuedsharesthatareownedbystockholders.AuthorizedSharesAuthorizationandIssuanceofCapitalStockUnissuedTreasuryOutstandingTrePaid-InCapitalofaCorporationPaid-InCapitalofaCorporatiParvalueisanarbitraryamountassignedtoeachshareofstockwhenitisauthorized.Marketpriceistheamountthateachshareofstockwillsellforinthemarket.Stockholders?EquityParvalueisanarbitraryamouCommonstockcanbeissuedinthreeforms:No-ParCommonStockParValueCommonStockStatedValueCommonStockLet抯examinethisformofstock.Stockholders?EquityCommonstockcanbeissuedinIssuanceofParValueStockPreparethejournalentrytorecordanissuanceof10,000sharesof$2parvaluestockfor$25persharewhichoccurredonSeptember1,1999.Record:Thecashreceived.Thenumberofsharesissued?theparvaluepershareintheCommonStockaccount.TheremainderisassignedtoContributedCapitalinExcessofPar.IssuanceofParValueStockPreIssuanceofParValueStockThejournalentrytorecordanissuanceof10,000sharesof$2parvaluestockfor$25pershareonSeptember1,1999shouldincludeacredittocommonstockfortheparvalueofthesharesissued.IssuanceofParValueStockTheIssuanceofParValueStockIssuanceofParValueStockCommonstockcanbeissuedinthreeforms:No-ParCommonStockParValueCommonStockStatedValueCommonStockStockholders?EquityAllproceedscreditedtoCommonStockTreatedlikeparvaluecommonstockCommonstockcanbeissuedinPreferredStockAseparateclassofstock,typicallyhavingpriorityovercommonsharesin...Dividenddistributions.Distributionofassetsincaseofliquidation.Usuallyhasastateddividendrate.Normallyhasnovotingrights.Usuallycallablebythecompany.PreferredStockAseparateclasCumulativePreferredStockVs.NoncumulativeCumulativeDividendsinarrearsmustbepaidbeforedividendsmaybepaidoncommonstock.Undeclareddividendsfromcurrentandprioryearsdonothavetobepaidinfutureyears.CumulativePreferredStockVs.NStockPreferredastoDividendsExample:ConsiderthefollowingpartialStatementofStockholders?Equity.During1999,thedirectorsdeclarecashdividendsof$5,000.Inyear2000,thedirectorsdeclarecashdividendsof$42,000.StockPreferredastoDividendStockPreferredastoDividendsStockPreferredastoDividendConvertiblePreferredStockIjustconverted100sharesofpreferredstockinto1,000sharesofcommonstockandendedupwithahigherdividendyield!Gee,Ican’ntdothatwithmypreferredstock.Somepreferredstockisconvertibleintosharesofcommonstock.ConvertiblePreferredStockIjPreferredStockPreferredStockStockIssuedforAssetsOtherThanCashCompaniessometimesissuestockinexchangefornon-cashassets.Recordthetransactionatthemarketvalueofthegoodsorservicesreceived.StockIssuedforAssetsOtherIlovethisstuff!Canwedosomemore?Ilovethisstuff!MarketValueAccountingbytheissuer.Accountingbytheinvester.Commonstockiscarriedatoriginalissueprice.Investmentsinmarketablesecuritiesarecarriedatmarketvalue.MarketValueAccountingbytheMarketPriceofPreferredStockFactorsaffectingmarketpriceofpreferredstock:DividendrateRiskLevelofinterestratesThereturnbasedonthemarketvalueiscalledthe揹ividendyield?MarketPriceofPreferredStocMarketPriceofCommonStockFactorsaffectingmarketpriceofcommonstock:Investors?expectationsoffutureprofitability.Riskthatthislevelofprofitabilitywillnotbeachieved.Changesinmarketvaluehavenoimpactonthebooksoftheissuer.MarketPriceofCommonStockStockSplitsCompaniesusestocksplitstoreducemarketprice.Outstandingsharesincrease,butparvalueisdecreasedproportionately.IceCreamParlorBananaSplitsOnSaleNowStockSplitsCompaniesusestStockSplits

ExampleAssumethatacorporationhad5,000sharesof$1parvaluecommonstockoutstandingbeforea2杅or?stocksplit.StockSplits

ExampleAssumethaAssumethatacorporationhad5,000sharesof$1parvaluecommonstockoutstandingbeforea2杅or?stocksplit.IncreaseDecreaseNoChangeStockSplits

ExampleAssumethatacorporationhadUnissuedSharesTreasurySharesOutstandingSharesTreasurysharesareissuedsharesthathavebeenreacquiredbythecorporation.IssuedSharesAuthorizedSharesTreasuryStockUnissuedTreasuryOutstandingTreTreasuryStockNovotingordividendrightsContraequityaccountWhenstockisreacquired,thecorporationrecordsthetreasurystockatcost.TreasuryStockNovotingordivOnMay1,1998EastCorp.reacquired3,000sharesofitscommonstockat$55pershare.PreparethejournalentryforMay1.TreasuryStock

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