mba會(huì)計(jì)教材chap11~1

1、?The McGraw-Hill Companies, Inc., 1999Slide 11-1Irwin/McGraw-HillChapter 11Stockholders?Equity: Paid-in Capital?The McGraw-Hill Companies, Inc., 1999Slide 11-2Irwin/McGraw-HillCorporationsExistence is separate from owners.An entity created by law.Has rights and privileges.Privately, or Closely, Held

2、Publicly HeldOwnership can be ?The McGraw-Hill Companies, Inc., 1999Slide 11-3Irwin/McGraw-HillWhy Businesses IncorporateStockholders have no personal liability.Privately, or Closely HeldPublicly HeldTransferability of ownership.Professional management.Continuity of existence.?The McGraw-Hill Compan

3、ies, Inc., 1999Slide 11-4Irwin/McGraw-HillDisclose financial information.Financial statements prepared in accordance with GAAP.CPAs must audit the financial statements.Must comply with federal securities laws.Must submit financial information for SEC review.Publicly Owned Corporations face Different

4、 Rules?The McGraw-Hill Companies, Inc., 1999Slide 11-5Irwin/McGraw-HillRights of StockholdersStockholdersRightsVoting (in person or by proxy).Proportionate distribution of dividends .Proportionate distribution of assets in a liquidation.?The McGraw-Hill Companies, Inc., 1999Slide 11-6Irwin/McGraw-Hi

5、llRights of StockholdersUltimate controlStockholders usually meet once a year.Corporate Organization ChartSecretaryTreasurerControllerOther VicePresidentsPresidentBoard of DirectorsStockholders?The McGraw-Hill Companies, Inc., 1999Slide 11-7Irwin/McGraw-HillRights of StockholdersStockholder ledgers

6、are often maintained by a stock transfer agent or stock registrar.Corporate Organization ChartSecretaryTreasurerControllerOther VicePresidentsPresidentBoard of DirectorsStockholders?The McGraw-Hill Companies, Inc., 1999Slide 11-8Irwin/McGraw-HillEach unit of ownership is called a share of stock.A st

7、ock certificate serves as proof that a stockholder has purchased shares.Rights of Stockholders?The McGraw-Hill Companies, Inc., 1999Slide 11-9Irwin/McGraw-HillWhen the stockis sold, the stockholder signs a transfer endorsement on the back of the stock certificate .Rights of Stockholders?The McGraw-H

8、ill Companies, Inc., 1999Slide 11-10Irwin/McGraw-HillFunctions of the Board of DirectorsOverall responsibility for managing the company.Selected by a vote of the stockholdersCorporate Organization ChartSecretaryTreasurerControllerOther VicePresidentsPresidentBoard of DirectorsStockholders?The McGraw

9、-Hill Companies, Inc., 1999Slide 11-11Irwin/McGraw-HillCorporate Organization ChartSecretaryTreasurerControllerOther VicePresidentsPresidentBoard of DirectorsStockholdersFunctions of the Corporate OfficersChief AccountantContractual and legal representationCustodian of funds?The McGraw-Hill Companie

10、s, Inc., 1999Slide 11-12Irwin/McGraw-HillAuthorization and Issuance of Capital StockThe maximum number of shares of capital stock that can be sold to the public. AuthorizedShares?The McGraw-Hill Companies, Inc., 1999Slide 11-13Irwin/McGraw-HillAuthorizedSharesIssued shares are authorized shares of s

11、tock that have been sold.Unissued shares are authorized shares of stock that never have been sold.Usually shares are sold through an underwriter.Authorization and Issuance of Capital Stock?The McGraw-Hill Companies, Inc., 1999Slide 11-14Irwin/McGraw-HillUnissuedSharesTreasurySharesOutstandingSharesT

12、reasury shares are issued shares that have been reacquired by the corporation.IssuedSharesOutstanding shares are issued shares that are owned by stockholders.AuthorizedSharesAuthorization and Issuance of Capital Stock?The McGraw-Hill Companies, Inc., 1999Slide 11-15Irwin/McGraw-HillPaid-In Capital o

13、f a CorporationPaid-in CapitalContributions byinvestors in exchangefor capital stock.Retained EarningsRetention of profitsearned by thecorporation.Stockholders equity isincreased in two ways.?The McGraw-Hill Companies, Inc., 1999Slide 11-16Irwin/McGraw-HillPar value is an arbitrary amount assigned t

14、o each share of stock when it is authorized.Market price is the amount that each share of stock will sell for in the market.Stockholders?Equity?The McGraw-Hill Companies, Inc., 1999Slide 11-17Irwin/McGraw-HillCommon stock can be issued in three forms:No-Par Common StockPar Value Common StockStated V

15、alue Common StockLet抯 examine this form of stock.Stockholders?Equity?The McGraw-Hill Companies, Inc., 1999Slide 11-18Irwin/McGraw-HillIssuance of Par Value StockPrepare 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, 199

16、9. Record:The cash received.The number of shares issued ?the par value per share in the Common Stock account.The remainder is assigned to Contributed Capital in Excess of Par .?The McGraw-Hill Companies, Inc., 1999Slide 11-19Irwin/McGraw-HillIssuance of Par Value StockThe journal entry to record an

17、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 shares issued. DateDescriptionDebitCredit1-SepCash250,000 Common Stock20,000 Additional Paid-in Capital230,000 ?The McGraw-Hill Companies, Inc., 199

18、9Slide 11-20Irwin/McGraw-HillStockholders Equity with Common StockStockholders Equity Contributed capital: Common Stock - $2 par value; 50,000 shares authorized; 10,000 shares issued and outstanding20,000$ Contributed Capital in Excess of Par230,000 Retained earnings65,000 Total stockholders equity3

19、15,000$ Issuance of Par Value Stock?The McGraw-Hill Companies, Inc., 1999Slide 11-21Irwin/McGraw-HillCommon stock can be issued in three forms:No-Par Common StockPar Value Common StockStated Value Common StockStockholders?EquityAll proceeds credited to Common StockTreated like par value common stock

20、?The McGraw-Hill Companies, Inc., 1999Slide 11-22Irwin/McGraw-HillPreferred StockA separate class of stock, typically having priority over common shares in . . .Dividend distributions.Distribution of assets in case of liquidation.Usually has a stated dividend rate.Normally has no voting rights.Usual

21、ly callable by the company.?The McGraw-Hill Companies, Inc., 1999Slide 11-23Irwin/McGraw-HillCumulative Preferred StockVs.NoncumulativeCumulativeDividends in arrears must be paid before dividends may be paid on common stock.Undeclared dividends from current and prior years do not have to be paid in

22、future years.?The McGraw-Hill Companies, Inc., 1999Slide 11-24Irwin/McGraw-HillStock Preferred as to DividendsCommon stock, $50 par value; 4,000 shares authorized, issued and outstanding200,000$ Preferred stock, 9%, $100 par value; 1,000 shares authorized, issued and outstanding100,000 Total contrib

23、uted capital300,000$ Example: Consider the following partial Statement of Stockholders?Equity.During 1999, the directors declare cash dividends of $5,000. In year 2000, the directors declare cash dividends of $42,000.?The McGraw-Hill Companies, Inc., 1999Slide 11-25Irwin/McGraw-HillPreferredCommonIf

24、 Preferred Stock is Noncumulative:Year 1999 $5,000 dividends declared5,000$ -$ Year 2000 Step 1: Current preferred dividend9,000$ Step 2: Remainder to common shareholders33,000$ If Preferred Stock is Cumulative:Year 1999 $5,000 dividends declared5,000$ -$ Year 2000 Step 1: Dividends in arrears4,000$

25、 Step 2: Current preferred dividend9,000 Step 3: Remainder to common shareholders29,000$ Totals13,000$ 29,000$ Stock Preferred as to Dividends?The McGraw-Hill Companies, Inc., 1999Slide 11-26Irwin/McGraw-HillConvertible Preferred StockI just converted 100 shares of preferred stock into 1,000 shares

26、of common stock and ended up with a higher dividend yield!Gee, I cannt do that with my preferred stock.Some preferred stock is convertible into shares of common stock.?The McGraw-Hill Companies, Inc., 1999Slide 11-27Irwin/McGraw-HillPreferred StockStockholders Equity with Common and Preferred StockS

27、tockholders Equity Contributed capital: Common Stock - $10 par value; 50,000 shares authorized; 30,000 shares issued and outstanding300,000$ Preferred Stock - $100 par value; 1,000 shares authorized; 50 shares issued and outstanding5,000 Contributed Capital in Excess of Par1,000 Retained earnings65,

28、000 Total stockholders equity371,000$ ?The McGraw-Hill Companies, Inc., 1999Slide 11-28Irwin/McGraw-HillStock Issued for Assets Other Than CashCompanies sometimes issue stock in exchange for non-cash assets.Record the transaction at the market value of the goods or services received.?The McGraw-Hill

29、 Companies, Inc., 1999Slide 11-29Irwin/McGraw-HillI love this stuff!Can we do some more?The McGraw-Hill Companies, Inc., 1999Slide 11-30Irwin/McGraw-HillMarket ValueAccounting by the issuer.Accounting by the invester.Common stock is carried at original issue price. Investments in marketable securiti

30、es are carried at market value. ?The McGraw-Hill Companies, Inc., 1999Slide 11-31Irwin/McGraw-HillMarket Price of Preferred StockFactors affecting market price of preferred stock:Dividend rateRiskLevel of interest ratesThe return based on the market value is called the 揹ividend yield?The McGraw-Hill

31、 Companies, Inc., 1999Slide 11-32Irwin/McGraw-HillMarket Price of Common StockFactors affecting market price of common stock:Investors?expectations of future profitability.Risk that this level of profitability will not be achieved.Changes in market value have no impact on the books of the issuer.?Th

32、e McGraw-Hill Companies, Inc., 1999Slide 11-33Irwin/McGraw-HillStock SplitsCompanies use stock splits to reduce market price.Outstanding shares increase, but par value is decreased proportionately.Ice Cream ParlorBanana Splits On Sale Now?The McGraw-Hill Companies, Inc., 1999Slide 11-34Irwin/McGraw-

33、HillStock SplitsExampleAssume that a corporation had 5,000 shares of $1 par value common stock outstanding before a 2 杅or? stock split.Before SplitAfter SplitCommon Stock Shares5,000 Par Value per Share1.00$ Total Par Value5,000$ ?The McGraw-Hill Companies, Inc., 1999Slide 11-35Irwin/McGraw-HillAssu

34、me that a corporation had 5,000 shares of $1 par value common stock outstanding before a 2 杅or? stock split.IncreaseDecreaseNo ChangeBefore SplitAfter SplitCommon Stock Shares5,000 10,000 Par Value per Share1.00$ 0.50$ Total Par Value5,000$ 5,000$ Stock SplitsExample?The McGraw-Hill Companies, Inc.,

35、 1999Slide 11-36Irwin/McGraw-HillUnissuedSharesTreasurySharesOutstandingSharesTreasury shares are issued shares that have been reacquired by the corporation.IssuedSharesAuthorizedSharesTreasury Stock?The McGraw-Hill Companies, Inc., 1999Slide 11-37Irwin/McGraw-HillTreasury StockNo voting or dividend

36、 rightsContra equity accountWhen stock is reacquired, the corporation records the treasury stock at cost .?The McGraw-Hill Companies, Inc., 1999Slide 11-38Irwin/McGraw-HillOn May 1, 1998 East Corp. reacquired 3,000 shares of its common stock at $55 per share.Prepare the journal entry for May 1.Treas

37、ury StockExampleDateDescriptionDebitCredit?The McGraw-Hill Companies, Inc., 1999Slide 11-39Irwin/McGraw-HillOn May 1, 1998 East Corp. reacquired 3,000 shares of its common stock at $55 per share.Prepare the journal entry for May 1.Treasury StockExampleDateDescriptionDebitCredit1-MayTreasury Stock165,000 Cash165,000 3000 shares ?$55 = $165,000?The McGraw-Hill Compa