mba会计教材chap11~1

11-13 Authorization and Issuance of
Capital Stock
Authorized Shares
Usually shares are
sold through an underwriter.
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Issued shares are authorized shares of stock that have been
The remainder is assigned to Contributed Capital in Excess of Par.
Prepare the journal entry to record an issuance of 10,000 shares of $2 par value stock for $25 per share which occurred on September 1, 1999.
Irwin/McGraw-Hill
Retained Earnings
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Slide 11-16
Stockholders?Equity
Par value is an arbitrary amount
assigned to each share of stock when it is
sold.
Unissued shares are authorized shares of stock that never have been sold.
?The McGraw-Hill Companies, Inc., 1999
Slide
11-14 Authorization and Issuance of
Chief Accountant
Preห้องสมุดไป่ตู้ident
Secretary
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Treasurer
Controller Other Vice Presidents
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Slide
11-12 Authorization and Issuance of Capital Stock
Slide 11-11
Functions of the Corporate Officers
Corporate Organization Chart
Contractual and legal representation
Stockholders
Custodian of
funds
Board of Directors
Treasury shares are issued shares that have been reacquired by the
corporation.
Irwin/McGraw-Hill
?The McGraw-Hill Companies, Inc., 1999
Slide 11-15
Paid-In Capital of a Corporation
authorized.
Market price is the amount that
each share of stock will sell
for in the market.
Irwin/McGraw-Hill
?The McGraw-Hill Companies, Inc., 1999
Slide 11-17
Secretary
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Treasurer
Controller Other Vice Presidents
?The McGraw-Hill Companies, Inc., 1999
Slide 11-7
Rights of Stockholders
Corporate Organization Chart
Voting (in person or by proxy).
Proportionate Rights distribution of
dividends.
Proportionate distribution of
assets in a liquidation.
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Stockholders?Equity
Common stock can be issued in three forms:
Par Value Common
Stock
No-Par Common
Stock
Stated Value Common Stock
Let抯 examine this form of stock.
Existence is separate from
owners.
Has rights and privileges.
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Ownership can be
Privately, or Closely, Held
Publicly Held
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shares issued.
Date
Description
1-Sep Cash
Common Stock
Additional Paid-in Capital
Debit
250,000
Credit
Slide 11-6
Rights of Stockholders
Corporate Organization Chart
Ultimate control
Stockholders
Stockholders usually meet once a year.
Board of Directors
President
Must submit financial information for SEC review.
Irwin/McGraw-Hill
?The McGraw-Hill Companies, Inc., 1999
Slide 11-5
Rights of Stockholders
Stockholders
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Irwin/McGraw-Hill
?The McGraw-Hill Companies, Inc., 1999
Slide 11-18
Issuance of Par Value Stock
Record:
The cash received.
The number of shares issued ?the par value per share in the Common Stock account.
Disclose financial information.
Financial statements prepared in accordance with GAAP.
CPAs must audit the financial statements.
Must comply with federal securities laws.
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Privately, or Closely Held
Publicly Held
?The McGraw-Hill Companies, Inc., 1999
Slide
11-4 Publicly Owned Corporations face
Different Rules
Slide 11-1
Chapter 11
Stockholders?Equity: Paid-in Capital
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?The McGraw-Hill Companies, Inc., 1999
Slide 11-2
Corporations
An entity created by law.
stock. A stock certificate serves as proof that a stockholder has purchased shares.
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?The McGraw-Hill Companies, Inc., 1999
Slide 11-9
Rights of Stockholders
Overall responsibility for managing the company.
Secretary
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Treasurer
Controller Other Vice Presidents
?The McGraw-Hill Companies, Inc., 1999
Stockholders' equity is increased in two ways.
Contributions by investors in exchange
for capital stock.
Retention of profits earned by the corporation.
Paid-in Capital
Authorized Shares
The maximum number of shares of capital
stock that can be sold to the public.
Irwin/McGraw-Hill
?The McGraw-Hill Companies, Inc., 1999
Slide
Stockholder ledgers are often maintained by a
stock transfer agent or stock
registrar.
Stockholders Board of Directors
President
Secretary
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Slide 11-3
Why Businesses Incorporate
Stockholders have no personal liability.
Transferability of ownership.
Professional management.
Continuity of existence.
Treasurer
Controller Other Vice Presidents
?The McGraw-Hill Companies, Inc., 1999
Slide 11-8
Rights of Stockholders
Each unit of ownership is called a share of
Capital Stock
Authorized Shares
Outstanding shares are issued shares that are owned by stockholders.
Issued Shares
Outstanding Shares
Treasury Shares
Unissued Shares
Irwin/McGraw-Hill
?The McGraw-Hill Companies, Inc., 1999
Slide 11-19
Issuance of Par Value Stock
The journal entry to record an issuance of 10,000 shares of $2 par value stock for $25 per share on September 1, 1999 should include a credit to common stock for the par value of the
Slide 11-10
Functions of the Board of Directors
Corporate Organization Chart
Selected by a vote of the
stockholders
Stockholders Board of Directors
President
When the stock is sold, the stockholder
signs a transfer endorsement on the back of the stock certificate.
Irwin/McGraw-Hill
?The McGraw-Hill Companies, Inc., 1999