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35 terms

Acc 202 ch. 13: corporations

STUDY
PLAY
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.