[精选]CapitalStock,DividendsBusiness(公司金融会计)kdl.pptx

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1、C11-1Learning ObjectivesPower Notes1.Nature of a Corporation2.Stockholders Equity 3.Sources of Paid-in Capital 4.Issuing Stock 5.Treasury Stock Transactions6.Stock Splits7.Accounting for Dividends8.Financial Analysis and InterpretationChapter F11C11 Corporations:Organization,Capital Stock,Dividends

2、Corporations:Organization,Capital Stock,DividendsC11-2 Characteristics of Corporations Stockholders Equity Issuing Stock Treasury Stock Transactions Stock Splits and DividendsDividend Yield on Common StockSlide#Power Note Topics31019222835 Note:To select a topic,type the slide#and press Enter.Power

3、NotesChapter F11 Corporations:Organization,Capital Stock,Dividends Corporations:Organization,Capital Stock,DividendsC11-3Characteristics of CorporationsCharacteristics of CorporationsAs a separate legal entity,a corporation may own and dispose of property in its own name.The corporation ownership is

4、 divided into units called shares of stock.The owners of the shares are called shareholders or stockholders.Stockholders of a corporation have a limited liability.C11-4Characteristics of CorporationsCharacteristics of CorporationsStockholders(owners of corporation stock)Common Stock Common Stock the

5、 basic ownership of stock with rights to vote in election of directors,share in distribution of earnings,and purchase additional shares.Preferred Stock Preferred Stock A class of stock with preferential rights over common stock in payment of dividends and company liquidation.Classes of StockClasses

6、of StockC11-5Characteristics of CorporationsCharacteristics of CorporationsBoard of Directors(elected by stockholders)Stockholders(owners of corporation stock)C11-6Characteristics of CorporationsCharacteristics of CorporationsOfficers(selected by board of directors)Board of Directors(elected by stoc

7、kholders)Stockholders(owners of corporation stock)C11-7Characteristics of CorporationsCharacteristics of CorporationsEmployees(hired by officers)Officers(selected by board of directors)Board of Directors(elected by stockholders)Stockholders(owners of corporation stock)C11-8Forming a CorporationFormi

8、ng a CorporationFirst step is to file an 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 incorporation which

9、 formally create the corporation.Management and board of directors prepare bylaws which are operation rules and procedures.C11-9 Date DateDescriptionDescriptionDebitDebitCreditCreditForming a CorporationForming a CorporationOrganization Costs8,500Cash8,500Amortization Expense1,700Organization Costs1

10、,700$8,500 costs/5 years=$1,700Jan.5Paid organization costs of$8,500.Amortization of organization costs over 5 years.Dec.31Cost of organizing includes legal fees,taxes and licenses,promotion costs,etc.These costs are recorded as an intangible asset.C11-10 Stockholders Equity Stockholders EquityAsset

11、sLiabilitiesStockholdersEquityStockholders Equity=Assets LiabilitiesRepresents the stockholders share of the total assets.C11-11 Stockholders Equity Stockholders EquityAssetsAssetsLiabilitiesLiabilitiesStockholdersEquityStockholders Equity:Stockholders Equity:Paid-in capital:Common stock$330,000Reta

12、ined earnings80,000Total$410,000C11-12 Stockholders Equity Stockholders EquityAssetsAssetsLiabilitiesLiabilitiesStockholdersEquityThere are two sources of stockholders equityStockholders Equity:Stockholders Equity:Paid-in capital:Common stock$330,000Retained earnings80,000Total$410,000C11-13 Stockho

13、lders Equity Stockholders EquityAssetsAssetsLiabilitiesLiabilitiesStockholdersEquityfromfromstockholdersstockholdersStockholders Equity:Stockholders Equity:Paid-in capital:Paid-in capital:Common stockCommon stock$330,000$330,000Retained earnings80,000Total$410,000There are two sources of stockholder

14、s equity1C11-14 Stockholders Equity Stockholders EquityAssetsAssetsLiabilitiesLiabilitiesStockholdersEquityStockholders Equity:Stockholders Equity:Paid-in capital:Common stock$330,000Retained earningsRetained earnings80,00080,000Total$410,000from earningsfrom earningsThere are two sources of stockho

15、lders equity2C11-15 Stockholders Equity Stockholders EquityAssetsAssetsLiabilitiesLiabilitiesStockholdersEquityThere are two sources of stockholders equityfromstockholdersStockholders Equity:Stockholders Equity:Paid-in capital:Common stock$330,000Retained earnings80,000Total$410,000from earnings12C1

16、1-16Two Classes of StockholdersTwo Classes of StockholdersCommon Stock Common Stock The basic ownership of stock includes:1.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 s

17、tock offerings to maintain an existing ownership percentage.Preferred Stock Preferred Stock A class of stock with preferential rights over common stock with respect to payment of dividends and assets of the corporation in liquidation.C11-17Nonparticipating Preferred StockNonparticipating Preferred S

18、tockPreferred dividend4,0004,0004,000Common dividend$6,000$31,000$18,000Dividends per share:Preferred$4.00$4.00$4.00 Common$1.50$7.75$4.50A nonparticipating preferred stock is limited to a certain amount.Assume 1,000 shares of$4 nonparticipating preferred stock and 4,000 shares of common stock and t

19、he following:20022003 2004 Net income$20,000$55,000$62,000Amount retained10,00020,00040,000Amount distributed$10,000$35,000$22,000C11-18Cumulative Preferred StockCumulative Preferred StockPreferred Dividend:First year in arrears$4,000 Second year in arrears4,000 Third year current4,00012,000Common d

20、ividend$10,000Dividends per share:Preferred$12.00 Common$2.50Assume 1,000 shares of$4 cumulative preferred stock and 4,000 shares of common stock.No dividends have been paid in the preceding two years.Amount distributed in 3rd year$22,000C11-19 Date DateDescriptionDescriptionDebitDebitCreditCreditIs

21、suing StockIssuing StockCash1,500,000Preferred Stock500,000Common Stock1,000,000The stock accounts are controlling accounts.A record of each stockholders name,address,and number of shares is kept in a stockholders subsidiary ledger.Jan.5One-half of each class is issued at par for cash.A corporation

22、is authorized to issue 10,000 shares of preferred stock,$100 par,and 100,000 shares of common stock,$20 par.C11-20 Date DateDescriptionDescriptionDebitDebitCreditCreditPremium on Issuing StockPremium on Issuing StockCash110,000Preferred Stock100,000Paid-In Capital in Excess10,000The$10,000 excess is

23、 recorded in a separate account because some states do not consider this to be part of legal capital and may be used for dividends.Many states do not permit issuance at a discount.Jan.5Issued 2,000 shares of$50 par preferred stock for$55.When stock is issued for more than its par,the stock has sold

24、at a premium.It has sold at a discount if issued for less than its par.C11-21 Date DateDescriptionDescriptionDebitDebitCreditCreditIssuing Stock for Non-Cash Assets Issuing Stock for Non-Cash Assets Land120,000Common Stock100,000Paid-In Capital in Excess20,000Jan.5Acquired land(fair market value can

25、not be determined)for 10,000 shares of$10 par common.The current market price of the stock is$12 per share.Stock issued for assets other than cash should be recorded at the fair market value of the asset or fair market value of the stock,whichever can be more clearly determined.C11-22 Date DateDescr

26、iptionDescriptionDebitDebitCreditCreditIssuing No-Par StockIssuing No-Par StockCash400,000Common Stock400,000Cash36,000Common Stock36,000Jan.5Issuance of 10,000 shares of no-par common at$40.In most states,both preferred and common stock may be issued without a par value.Preferred stock,however,is n

27、ormally assigned a par value.Jun.15Issuance of 1,000 shares of no-par common at$36.C11-23Treasury Stock TransactionsTreasury Stock TransactionsA recent survey indicated that over 64%of companies reported treasury stock.Treasury stock Treasury stock is stock that:1.Has been issued as fully paid.2.Has

28、 been reacquired by the corporation.3.Has not been canceled or reissued.A commonly used method of accounting for treasury stock is the cost method.The account Treasury Stock Treasury Stock is debited for a purchase.When sold,Treasury Stock is credited and any difference is debited or credited to an

29、account titled Paid-In Capital from Sale of Treasury StockPaid-In Capital from Sale of Treasury Stock.C11-24 Date DateDescriptionDescriptionDebitDebitCreditCreditTreasury Stock TransactionsTreasury Stock TransactionsTreasury Stock45,000Cash45,000Cash12,000Treasury Stock9,000Paid-In CapitalTreasury S

30、tock3,000Cash8,000Paid-In CapitalTreasury Stock1,000Treasury Stock9,000Jan.5Purchased 1,000 shares of treasury stock at$45.Jun.2Sold 200 shares of treasury stock at$60.Sold 200 shares of treasury stock at$40.Sep.3C11-25General Ledger BalanceDateItemDebitCredit DebitCreditAccount:Treasury StockAccoun

31、t No.3801/51,000 shs.$4545,00045,0006/2200 shs.$609,00036,0009/3200 shs.$409,00027,000Treasury Stock Transactions General LedgerTreasury Stock Transactions General LedgerTreasury stock is booked at cost upon acquisition and sale.C11-26 BalanceDateItemDebitCredit DebitCreditAccount:Paid-In Capital Tr

32、easury StockAccount No.3956/2200 shs.$603,0003,0009/3200 shs.$401,0002,000General Ledger BalanceDateItemDebitCredit DebitCreditAccount:Treasury StockAccount No.3801/51,000 shs.$4545,00045,0006/2200 shs.$609,00036,0009/3200 shs.$409,00027,000Treasury Stock Transactions General LedgerTreasury Stock Tr

33、ansactions General LedgerIf treasury stock is sold for more than its cost,the difference is credited to Paid-In Capital Treasury Stock.C11-27Paid-in capital:Common stock,$25 par (20,000 shares authorized and issued)$500,000Excess of issue price over par150,000From sale of treasury stock2,000 Total p

34、aid-in capital$652,000Retained earnings130,000Total$782,000Deduct treasury stock(600 shares at cost)27,000Total stockholders equity$755,000 Stockholders EquityStockholders EquityDebit balance of Treasury Stock account.C11-28Corporations sometimes reduce the par or stated value of their common stock

35、by issuing a proportionate number of additional shares.This is called a stock split.An example:A corporation has 10,000 shares of$100 par common stock outstanding when a 5-for-1 stock split is declared.Before:100,000 shares$100 par=$10,000,000After:500,000 shares$20 par=$10,000,000The total legal ca

36、pital is the same.Only the number of shares and the par per share are changed.No journal entry is required.Accounting for Stock SplitsAccounting for Stock SplitsC11-29DividendsDividendsDividends are distributions of retained earnings to stockholders.Dividends may be paid in cash,stock,or property.Di

37、vidends,even on cumulative preferred stock,are never required,but once declared become a legal liability of the corporation.Cash dividends are declared and paid on shares outstanding with three conditions:1.Sufficient retained earnings2.Sufficient cash3.Formal action by the board of directorsC11-30

38、Date DateDescriptionDescriptionDebitDebitCreditCreditAccounting for Cash DividendsAccounting for Cash DividendsCash Dividends42,500Cash Dividends Payable42,500 Cash Dividends Payable 42,500Cash42,500Dec.1Declared cash dividends on preferred and common.Preferred:$2.50 x 5,000 shares=$12,500Common:$0.

39、30 x 100,000 shares=$30,000A quarterly cash dividend is declared on 5,000 shares of$100 par 10%preferred stock and$0.30 on the 100,000 shares of$10 par common stock.Jan.2Paid cash dividend declared on December 1.C11-31 Date DateDescriptionDescriptionDebitDebitCreditCreditAccounting for Stock Dividen

40、dsAccounting for Stock DividendsStock Dividends3,100,000Stock Dividends Distributable2,000,000Paid-In Capital in Excess of Par1,100,000 Stock Dividends Distributable2,000,000 Common Stock2,000,000Dec.15Declared a 100,000(5%)stock dividend on common.Market price is$31 a share at declaration date.Stoc

41、k dividends transfer pro rata shares of stock to stockholders.Assume a 5%stock dividend on common stock,$20 par,2,000,000 shares issued.Jan.10Issued the stock dividend declared on December 15.C11-32Stock Dividends and Stockholders EquityStock Dividends and Stockholders EquityEquity per share$37.80$3

42、6.00A Stockholder:Shares owned1,0001,050 Total equity$37,800$37,800 Portion of corporation owned.05%.05%Before After Common stock$40,000,000$42,000,000Excess of issue price over par9,000,00010,100,000Retained earnings26,600,00023,500,000 Total stockholders equity$75,600,000$75,600,000Number of share

43、s outstanding2,000,0002,100,000C11-33Stock Dividends and Stockholders EquityStock Dividends and Stockholders EquityEquity per share$37.80$36.00A Stockholder:Shares owned1,0001,050 Total equity$37,800$37,800 Portion of corporation owned.05%.05%Note:The total stockholders equity is exactly the same be

44、fore and after the stock dividend.Before After Common stock$40,000,000$42,000,000Excess of issue price over par9,000,00010,100,000Retained earnings26,600,00023,500,000 Total stockholders equity$75,600,000$75,600,000$75,600,000$75,600,000Number of shares outstanding2,000,0002,100,000C11-34Stock Divid

45、ends and Stockholders EquityStock Dividends and Stockholders Equity Before After Common stock$40,000,000$42,000,000Excess of issue price over par9,000,00010,100,000Retained earnings26,600,00023,500,000 Total stockholders equity$75,600,000$75,600,000Number of shares outstanding2,000,0002,100,000Note:

46、The individual stockholders equity is the same before and after the stock dividend,although the total number of shares have increased by 5%.Equity per share$37.80$36.00A Stockholder:Shares owned1,0001,0001,0501,050 Total equity$37,800$37,800$37,800$37,800 Portion of corporation owned.05%.05%.05%.05%

47、C11-35Profitability Measures The Common StockholderProfitability Measures The Common StockholderDividend YieldDividend Yield20001999Dividends per share of common$0.80$0.60Market price per share of common$20.50$13.50 C11-36Profitability Measures The Common StockholderProfitability Measures The Common

48、 StockholderDividend YieldDividend YieldUse:To indicate the rate of return to common stockholders in terms of dividendsDividends per share of common$0.80$0.60Market price per share of common$20.50$13.50Dividend yield on common stockDividend yield on common stock3.9%3.9%4.4%4.4%20001999C11-37 Note:To

49、 see the topic slide,type 2 and press Enter.This is the last slide in Chapter F11.Power NotesChapter F11 Corporations:Organization and Equity Rights Corporations:Organization and Equity Rights C11-389、静夜四无邻，荒居旧业贫。3月-233月-23Tuesday,March 14,202310、雨中黄叶树，灯下白头人。00:54:1000:54:1000:543/14/2023 12:54:10 A

50、M11、以我独沈久，愧君相见频。3月-2300:54:1000:54Mar-2314-Mar-2312、故人江海别，几度隔山川。00:54:1000:54:1000:54Tuesday,March 14,202313、乍见翻疑梦，相悲各问年。3月-233月-2300:54:1000:54:10March 14,202314、他乡生白发，旧国见青山。14 三月 202312:54:10 上午00:54:103月-2315、比不了得就不比，得不到的就不要。三月 2312:54 上午3月-2300:54March 14,202316、行动出成果，工作出财富。2023/3/14 0:54:1000:5