西方财务会计培训教程(英文版)(67页PPT).pptx

Chapter 15-1Chapter 15-2C H A P T E R 15STOCKHOLDERS EQUITYIntermediate Accounting13th EditionKieso,Weygandt,and Warfield Chapter 15-31.1.Discuss the characteristics of the corporate form of organization.Discuss the characteristics of the corporate form of organization.2.2.Identify the key components of stockholders equity.Identify the key components of stockholders equity.3.3.Explain the accounting procedures for issuing shares of stock.Explain the accounting procedures for issuing shares of stock.4.4.Describe the accounting for treasury stock.Describe the accounting for treasury stock.5.5.Explain the accounting for and reporting of preferred stock.Explain the accounting for and reporting of preferred stock.6.6.Describe the policies used in distributing dividends.Describe the policies used in distributing dividends.7.7.Identify the various forms of dividend distributions.Identify the various forms of dividend distributions.8.8.Explain the accounting for small and large stock dividends,and for stock splits.Explain the accounting for small and large stock dividends,and for stock splits.9.9.Indicate how to present and analyze stockholders equity.Indicate how to present and analyze stockholders equity.Learning ObjectivesChapter 15-4Issuance of Issuance of stockstockReacquisition Reacquisition of sharesof sharesThe Corporate The Corporate FormFormCorporate CapitalCorporate CapitalPreferred StockPreferred StockDividend PolicyDividend PolicyPresentation and Presentation and AnalysisAnalysisState corporate State corporate lawlawCapital stock or Capital stock or share systemshare systemVariety of Variety of ownership ownership interestsinterestsFeaturesFeaturesAccounting for Accounting for and reporting and reporting preferred stockpreferred stockFinancial Financial condition and condition and dividend dividend distributionsdistributionsTypes of Types of dividendsdividendsStock splitStock splitDisclosure of Disclosure of restrictionsrestrictionsPresentationPresentationAnalysisAnalysisStockholders EquityChapter 15-5Three primary forms of business organizationThe Corporate Form of OrganizationThe Corporate Form of OrganizationProprietorshipProprietorshipPartnershipPartnershipCorporationCorporationLO 1 Discuss the characteristics of the corporate form of organization.Special characteristics of the corporate form:1.Influence of state corporate law.2.Use of capital stock or share system.3.Development of a variety of ownership interests.Chapter 15-6State Corporate LawThe Corporate Form of OrganizationThe Corporate Form of OrganizationLO 1 Discuss the characteristics of the corporate form of organization.Corporation must submit articles of incorporation to the state in which incorporation is desired.General Motors-incorporated in Delaware.U.S.Steel-incorporated in New Jersey.Accounting for stockholders equity follows the provisions of each states business incorporation act.Chapter 15-7Capital Stock or Share SystemThe Corporate Form of OrganizationThe Corporate Form of OrganizationLO 1 Discuss the characteristics of the corporate form of organization.In the absence of restrictive provisions,each share carries the following rights:1.To share proportionately in profits and losses.2.To share proportionately in management(the right to vote for directors).3.To share proportionately in assets upon liquidation.4.To share proportionately in any new issues of stock of the same classcalled the preemptive right.Chapter 15-8Variety of Ownership InterestsThe Corporate Form of OrganizationLO 1 Discuss the characteristics of the corporate form of organization.Common stock represents basic ownership interest.Bears ultimate risks of loss.Receives the benefits of success.Not guaranteed dividends nor assets upon dissolution.Preferred stock is created by contract,when stockholders sacrifice certain rights in return for other rights or privileges,usually dividend preference.Chapter 15-9Contributed Contributed CapitalCapitalRetained EarningsRetained EarningsAccountAccountAdditional Paid-in Additional Paid-in CapitalCapitalAccountAccountLess:Less:Treasury StockTreasury StockAccountTwo Primary Sources of EquityCorporate CapitalCorporate CapitalLO 2 Identify the key components of stockholders equity.Common StockCommon StockAccountAccountPreferred StockPreferred StockAccountAccountAssets Assets Liabilities=Liabilities=EquityEquityChapter 15-10Issuance of StockAccounting problems:1.Par value stock.2.No-par stock.3.Stock issued with other securities.4.Stock issued in noncash transactions.5.Costs of issuing stock.LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCorporate CapitalShares authorized-Shares sold-Shares issuedChapter 15-11Par Value StockLow par values help companies avoid a contingent liability.Corporations maintain accounts for:Preferred Stock or Common Stock.Additional Paid-in CapitalLO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCorporate CapitalChapter 15-12BE15-1BE15-1:KC Corporation issued 300 shares of$10 par value:KC Corporation issued 300 shares of$10 par value common stock for$4,500.Prepare KCs journal mon stock for$4,500.Prepare KCs journal entry.CashCash4,5004,500Common stock Common stock (300 x$10)(300 x$10)3,0003,000Journal entry:Journal entry:Additional paid-in capitalAdditional paid-in capital1,5001,500LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCorporate CapitalChapter 15-13No-Par StockReasons for issuance:Avoids contingent liability.Avoids confusion over recording par value versus fair market value.LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCorporate CapitalSome states require that no-par stock have a stated value.Chapter 15-14BE15-2BE15-2:Swarten Corporation issued 600 shares of no-par:Swarten Corporation issued 600 shares of no-par common stock for$8,200.Prepare Swartens journal entry if(a)common stock for$8,200.Prepare Swartens journal entry if(a)the stock has no stated value,and(b)the stock has a stated value the stock has no stated value,and(b)the stock has a stated value of$2 per share.of$2 per share.CashCash8,2008,200Common stock Common stock 8,2008,200Journal entry:Journal entry:LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCorporate CapitalCashCash8,2008,200Common stock Common stock(600 x$2)(600 x$2)1,2001,200Additional paid-in capitalAdditional paid-in capital7,0007,000a.a.b.b.Chapter 15-15Stock Issued with Other SecuritiesTwo methods of allocating proceeds:1.the proportional method and2.the incremental method.LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCorporate CapitalChapter 15-16BE15-4BE15-4:Ravonette Corporation issued 300 shares of$10 par value:Ravonette Corporation issued 300 shares of$10 par value common stock and 100 shares of$50 par value preferred stock for a lump common stock and 100 shares of$50 par value preferred stock for a lump sum of$13,500.The common stock has a market value of$20 per share,sum of$13,500.The common stock has a market value of$20 per share,and the preferred stock has a market value of$90 per share.and the preferred stock has a market value of$90 per share.LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCorporate CapitalProportional MethodChapter 15-17LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCashCash13,50013,500Preferred stock (100 x$50)Preferred stock (100 x$50)5,0005,000Journal entry(Proportional):Journal entry(Proportional):Additional paid-in capital-preferredAdditional paid-in capital-preferred3,1003,100Common stock (300 x$10)Common stock (300 x$10)3,0003,000Additional paid-in capital-commonAdditional paid-in capital-common2,4002,400BE15-4BE15-4:Ravonette Corporation issued 300 shares of$10 par value:Ravonette Corporation issued 300 shares of$10 par value common stock and 100 shares of$50 par value preferred stock for a common stock and 100 shares of$50 par value preferred stock for a lump sum of$13,500.The common stock has a market value of$20 per lump sum of$13,500.The common stock has a market value of$20 per share,and the preferred stock has a market value of$90 per share.share,and the preferred stock has a market value of$90 per share.Chapter 15-18BE15-4BE15-4:(Variation)Ravonette Corporation issued 300 shares of$10 par:(Variation)Ravonette Corporation issued 300 shares of$10 par value common stock and 100 shares of$50 par value preferred stock for a value common stock and 100 shares of$50 par value preferred stock for a lump sum of$13,500.The common stock has a market value of$20 per lump sum of$13,500.The common stock has a market value of$20 per share,and the value of the preferred stock is unknown.share,and the value of the preferred stock is unknown.LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalIncremental MethodChapter 15-19LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCorporate CapitalCashCash13,50013,500Preferred stock (100 x$50)Preferred stock (100 x$50)5,0005,000Journal entry(Incremental):Journal entry(Incremental):Additional paid-in capital-preferredAdditional paid-in capital-preferred2,5002,500Common stock (300 x$10)Common stock (300 x$10)3,0003,000Additional paid-in capital-commonAdditional paid-in capital-common3,0003,000BE15-4BE15-4:(Variation)Ravonette Corporation issued 300 shares of$10:(Variation)Ravonette Corporation issued 300 shares of$10 par value common stock and 100 shares of$50 par value preferred par value common stock and 100 shares of$50 par value preferred stock for a lump sum of$13,500.The common stock has a market value stock for a lump sum of$13,500.The common stock has a market value of$20 per share,and the value of the preferred stock is unknown.of$20 per share,and the value of the preferred stock is unknown.Chapter 15-20Stock Issued in Noncash TransactionsThe general rule:Companies should record stock issued for services or property other than cash at either the:fair value of the stock issued or fair value of the noncash consideration received,whichever is more clearly determinable.LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalChapter 15-21LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCorporate CapitalLandLand80,00080,000Common stock Common stock (24,000 x$2)(24,000 x$2)48,00048,000April 1April 1:Issued 24,000 shares of common stock for land.The Issued 24,000 shares of common stock for land.The asking price of the land was$90,000;the fair market value of the asking price of the land was$90,000;the fair market value of the land was$80,000.land was$80,000.Additional paid-in capitalAdditional paid-in capital32,00032,000E15-2E15-2:Kathy Crystal Corporation was organized on January 1,:Kathy Crystal Corporation was organized on January 1,2010.It is authorized to issue 500,000 shares of no par common 2010.It is authorized to issue 500,000 shares of no par common stock with a stated value of$2 per share.Prepare the journal stock with a stated value of$2 per share.Prepare the journal entry to record the following.entry to record the following.Chapter 15-22LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCorporate CapitalOrganization expenseOrganization expense50,00050,000Common stock Common stock (10,000 x$2)(10,000 x$2)20,00020,000Aug.1Aug.1:Issued 10,000 shares of common stock to attorneys in Issued 10,000 shares of common stock to attorneys in payment of their bill of$50,000 for services rendered in payment of their bill of$50,000 for services rendered in helping the company organize.helping the company organize.Additional paid-in capitalAdditional paid-in capital30,00030,000E15-2E15-2:Kathy Crystal Corporation was organized on January 1,:Kathy Crystal Corporation was organized on January 1,2010.It is authorized to issue 500,000 shares of no par common 2010.It is authorized to issue 500,000 shares of no par common stock with a stated value of$2 per share.Prepare the journal stock with a stated value of$2 per share.Prepare the journal entry to record the following.entry to record the following.Chapter 15-23Costs of Issuing StockDirect costs incurred to sell stock,such as underwriting costs,accounting and legal fees,printing costs,andtaxes,should be reported as a reduction of the amounts paid in(additional paid-in capital).LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCorporate CapitalChapter 15-24Reacquisition of SharesLO 4 Describe the accounting for treasury stock.Corporations purchase their outstanding stock:To provide tax-efficient distributions of excess cash to shareholders.To increase earnings per share and return on equity.To provide stock for employee stock compensation contracts or to meet potential merger needs.To thwart takeover attempts or to reduce the number of stockholders.To make a market in the stock.Corporate CapitalCorporate CapitalChapter 15-25Purchase of Treasury StockTwo acceptable methods:Cost method(more widely used).Par or Stated value method.Treasury stock,reduces stockholders equity.Corporate CapitalLO 4 Describe the accounting for treasury stock.Chapter 15-26Corporate CapitalIllustrationIllustration:Pacific Company issued 100,000 shares of$1:Pacific Company issued 100,000 shares of$1 par value common stock at a price of$10 per share.In par value common stock at a price of$10 per share.In addition,it has retained earnings of$300,000.addition,it has retained earnings of$300,000.LO 4 Describe the accounting for treasury stock.Illustration 15-4Chapter 15-27Corporate CapitalCorporate CapitalIllustrationIllustration:Pacific Company issued 100,000 shares of$1:Pacific Company issued 100,000 shares of$1 par value common stock at a price of$10 per share.In par value common stock at a price of$10 per share.In addition,it has retained earnings of$300,000.addition,it has retained earnings of$300,000.On January 20,2010,Pacific acquires 10,000 shares of its On January 20,2010,Pacific acquires 10,000 shares of its stock at$11 per share.stock at$11 per share.LO 4 Describe the accounting for treasury stock.Treasury stock Treasury stock 110,000110,000Cash Cash 110,000110,000Chapter 15-28Corporate CapitalIllustrationIllustration:Stockholders equity section for Pacific after:Stockholders equity section for Pacific after purchase of the treasury stock.purchase of the treasury stock.LO 4 Describe the accounting for treasury stock.Illustration 15-5Chapter 15-29Sale of Treasury StockAbove Cost Below CostBoth increase total assets and stockholders equity.Corporate CapitalCorporate CapitalLO 4 Describe the accounting for treasury stock.Chapter 15-30Corporate CapitalCorporate CapitalCash Cash 15,00015,000Treasury stockTreasury stock11,00011,000Paid-in capital from treasury stockPaid-in capital from treasury stock4,0004,00