《CapitalStockDividendsBusiness(公司金融会计)精编版》由会员分享，可在线阅读，更多相关《CapitalStockDividendsBusiness(公司金融会计)精编版（38页珍藏版）》请在金锄头文库上搜索。
1、,Learning Objectives,Power Notes,1. Nature of a Corporation 2. Stockholders Equity 3. Sources of Paid-in Capital 4. Issuing Stock 5. Treasury Stock Transactions 6. Stock Splits 7. Accounting for Dividends 8. Financial Analysis and Interpretation,Chapter F11,C11,Corporations: Organization, Capital St
2、ock, Dividends,Characteristics of Corporations Stockholders Equity Issuing Stock Treasury Stock Transactions Stock Splits and Dividends Dividend Yield on Common Stock,Slide #Power Note Topics,3 10 19 22 28 35,Note: To select a topic, type the slide # and press Enter.,Power Notes,Chapter F11,Corporat
3、ions: Organization, Capital Stock, Dividends,Characteristics of Corporations,As a separate legal entity, a corporation may own and dispose of property in its own name. The corporation ownership is divided into units called shares of stock. The owners of the shares are called shareholders or stockhol
4、ders. Stockholders of a corporation have a limited liability.,Characteristics of Corporations,Stockholders (owners of corporation stock),Common Stock the basic ownership of stock with rights to vote in election of directors, share in distribution of earnings, and purchase additional shares. Preferre
5、d Stock A class of stock with preferential rights over common stock in payment of dividends and company liquidation.,Classes of Stock,Characteristics of Corporations,Board of Directors (elected by stockholders),Stockholders (owners of corporation stock),Characteristics of Corporations,Officers (sele
6、cted by board of directors),Board of Directors (elected by stockholders),Stockholders (owners of corporation stock),Characteristics of Corporations,Employees (hired by officers),Officers (selected by board of directors),Board of Directors (elected by stockholders),Stockholders (owners of corporation
7、 stock),Forming a Corporation,First step is to application of incorporation with the state. Because state laws differ, corporations often organize in states with more favorable laws. More than half of the largest companies are incorporated in Delaware. State grants a charter or articles of incorpora
8、tion which formally create the corporation. Management and board of directors prepare bylaws which are operation rules and procedures.,DateDescriptionDebitCredit,Forming a Corporation,Organization Costs8,500 Cash8,500 Amortization Expense1,700 Organization Costs1,700 $8,500 costs / 5 years = $1,700,
9、Jan. 5,Paid organization costs of $8,500.,Amortization of organization costs over 5 years.,Dec. 31,Cost of organizing includes legal fees, taxes and licenses, promotion costs, etc. These costs are recorded as an intangible asset.,Stockholders Equity,Assets,Liabilities,Stockholders Equity,Stockholder
10、s Equity = Assets Liabilities Represents the stockholders share of the total assets.,Stockholders Equity,Assets,Liabilities,Stockholders Equity,Stockholders Equity: Paid-in capital: Common stock$330,000 Retained earnings80,000 Total$410,000,Stockholders Equity,Assets,Liabilities,Stockholders Equity,
11、There are two sources of stockholders equity,Stockholders Equity: Paid-in capital: Common stock$330,000 Retained earnings80,000 Total$410,000,Stockholders Equity,Assets,Liabilities,Stockholders Equity,from stockholders,Stockholders Equity: Paid-in capital: Common stock$330,000 Retained earnings80,00
12、0 Total$410,000,There are two sources of stockholders equity,1,Stockholders Equity,Assets,Liabilities,Stockholders Equity,Stockholders Equity: Paid-in capital: Common stock$330,000 Retained earnings80,000 Total$410,000,from earnings,There are two sources of stockholders equity,2,Stockholders Equity,
13、Assets,Liabilities,Stockholders Equity,There are two sources of stockholders equity,from stockholders,Stockholders Equity: Paid-in capital: Common stock$330,000 Retained earnings80,000 Total$410,000,from earnings,1,2,Two Classes of Stockholders,Common Stock The basic ownership of stock includes: 1.
14、Right to vote in election of directors and other important matters. 2.Right to share in distribution of earnings. 3.Preemptive right to purchase sufficient shares of new common stock offerings to maintain an existing ownership percentage. Preferred Stock A class of stock with preferential rights ove
15、r common stock with respect to payment of dividends and assets of the corporation in liquidation.,Nonparticipating Preferred Stock,Preferred dividend4,0004,0004,000 Common dividend$6,000$31,000$18,000 Dividends per share: Preferred$ 4.00$ 4.00$ 4.00 Common$ 1.50$ 7.75$ 4.50,A nonparticipating prefer
16、red stock is limited to a certain amount. Assume 1,000 shares of $4 nonparticipating preferred stock and 4,000 shares of common stock and the following: 20022003 2004 Net income$20,000$55,000$62,000 Amount retained10,00020,00040,000 Amount distributed$10,000$35,000$22,000,Cumulative Preferred Stock,Preferred Dividend: First year in arrears$4,000 Second year in arrears4,000 Third year current4,00012,000 Common dividend$10,0
