Acc 202 ch. 13: corporations

Created by kevinb656 

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authorized stock

number of shares that a carter allows a corp. to sell

market value of stock

price at which a stock is bought and sold

par value of stock

amount assigned per share in a compay's charter

no par value stock

no assigned value in charter. stock sold at any price

minimum legal capital protects...(who)

creditors

stated value stock

it is no par stock, but directors a "stated value" per share

paid in capital is...

the total amount of cash and other assets the corp. receives from its stockholder in exchange for stock

JE for issuing par value stock at par value

cash. dr
common stock, $10 par value. cr.
issued shares of par value common stock a par

JE for issuing par value stock at a premium

cash. dr.
common stock, 10 par value. cr.
Paid in capital in excess of par value common sock. cr.

discount on common stock account (info about it)

contra to the common stock account. dr balance. not legal to sell stock at a discount in most states.

JE for issuing no par value stock

cash. dr.
common stock, no par stock. cr.

JE for issuing stated value stock

cash. dr.
common stock, 40 stated value. cr.
paid in capital in excess of stated value, common stock. cr.

JE Issuing stock for non cash assets

Land. dr.
common stock, $ par value. cr.
paid in capital in excess of par value, common stock. cr.

JE giving stock in exchange for promotion

operational expense. dr.
common stock, $ par value. cr.
paid in capital in excess of par value, common stock. cr.

three important dates for dividends

date of declaration-decide to pay
date of record-decide in date to pay
date of payment-when dividends is paid

JE date of declaration

retained earnings. dr.
common dividends payable. cr.

JE date of payment

common dividends payable. dr.
cash. cr.

dr or cr " retained earnings account"

cr (equity)

retained earnings loss

when a company either has cumulative loss, or pay dividends that exceed what it made casing a deficit. (a deduction on the BS after CS

stock dividend

gives more stock to existing stock holders with out any payment

2 reasons for a stock dividend

1. keeps price affordable
2. provides evidence that management thinks the company is doing well.

small stock dividend

25% or less of previously outstanding share

JE small stock dividends (date of declarations)

retained earnings. dr
commons stock dividend distributable cr.
paid in capital in exess of par value. cr.

JEsmall stock dividend (date of payment)

common stock dividends distributable. dr.
common stock, $10 par value. cr..

"common stock dividend distributable" is a dr or cr account

cr (equity)

JE for large stock dividend

retained earnings. dr.
common stock div. payable. cr.

JE issuance of preferred stock

cash. dr
prefered stock, $ par value. cr
paid in capital in excess of par value. cr.

convertible prefered stock

give holders the right to exchange their stock for common stock at a prefered rate.

callable prefered stock

gives the corp. the right to retire (purchase) this stock from its holders at a specific future date and price.

why prefered stock is issued

corp. gets capital without giving up power over organization. ie no voting rights

JEpurchasing treasury stock

treasurey stock, common. dr.
cash. cr

treasury stock is what type of account

contra equity

JE reissuing treasury stock

cash. dr.
treasury stock, common. cr.

JE selling treasury stock above cost

cash. dr..
treasury stock, common. cr.
paid in capital' treasury stock. cr.

JE selling treasury stock below cost

cash. dr.
paid in capital, treasury stock. dr.
retained earnings. dr.
treasures stock common. cr.

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