會計學(xué)原理第21版教輔資源wild ichap013

Chapter

13Accounting

for

CorporationsPrivately

HeldPublicly

HeldOwnershipcan

beCorporate

Form

of

OrganizationExistence

isseparate

fromownersAn

entitycreated

by

lawHas

rights

andprivilegesC

1Characteristics

of

CorporationsAdvantagesSeparate

legal

entityLimited

liability

of

stockholdersTransferable

ownership

rightsContinuous

lifeLack

of

mutual

agency

for

stockholdersEase

of

capital

accumulationDisadvantagesGovernmental

regulationCorporate

taxationC

1Corporate

Organization

andManagementC

1Corporate

governance

isthe

system

by

whichcompanies are

directedand

controlled.Board

of

DirectorsStockholdersPresident,

Vice

President,and

other

OfficersEmployees

of

the

CorporationCorporate

Organization

ChartSecretaryVice

PresidentFinanceVice

PresidentProductionVice

PresidentMarketingPresidentBoard

of

DirectorsStockholdersUltimatecontrolSelected

by

avote

of

thestockholdersOverallresponsibilityfor

managingthe

companyCorporate

Organization

andManagementC

1Stockholdersusually

meetonce

a

yearRights

of

Stockholders

Vote

at

stockholders’

meetings

(orregister

proxy

votes

electronically)

Sellstock

Purchase

additional

shares

of

stock

Receive

dividends,if

any

Share

equally

in

any

assets

remainingafter

creditors

are

paid

in

a

liquidationC

1Each

unit

ofownership

iscalled

a

share

ofstock.A

stock

certificateserves

as

proofthat

a

stockholderhas

purchasedshares.Stock

Certificates

and

TransferWhen

the

stock

is

sold,

the

stockholder

signs

a

transferendorsement

on

the

back

of

the

stock

certificate.C

1Stockholders'

EquityCommon

Stock,

par

value

$.01;authorized

250,000,000

shares;

issuedand

outstanding

92,556,295

shares

$925,563Stockholders'

EquityCommon

Stock,

par

value

$.01;authorized

250,000,000

shares;

issuedand

outstanding

92,556,295

shares

$925,563Basics

of

Capital

StockTotal

amount

of

stock

that

acorporation’s

charter

authorizes

it

to

sell.Total

amount

of

stock

that

has

beenissued

or

sold

to

stockholders.C

1Par

value

is

anarbitrary

amountassigned

to

eachshare

of

stock

whenit

is

authorized.Market

price

is

theamount

that

eachshare

of

stock

willsell

for

in

the

market.Basics

of

Capital

StockClasses

of

StockPar

ValueNo-Par

ValueStated

ValueC

1Par

Value

StockOn

September

1,

Matrix,

Inc.

issued

100,000shares

of

$2

par

value

stock

for

$25

per

share.Let’s

record

this

transaction.Issuing

Par

Value

StockCrSept.

1CashDr2,500,000200,0002,300,000Common

Stock,

$2

par

valuePaid-in

Capital

in

Excessof

Par

Value,CommonIssued

100,000

shares

of

common

stock.P

1Stockholders'

Equity

with

Common

StockStockholders'

EquityCommon

Stock

-

$2

par

value;

500,000

sharesauthorized;

100,000

shares

issued

andoutstanding

$

200,000Paid-In

Capital

in

Excess

of

Par

2,300,000Retained

earnings

650,000Total

stockholders'

equity

$

3,150,000Stockholders'

Equity

with

Common

StockStockholders'

EquityCommon

Stock

-

$2

par

value;

500,000

sharesauthorized;

100,000

shares

issued

andoutstandingPaid-In

Capital

in

Excess

of

Par$

200,0002,300,000Retained

earningsTotal

stockholders'

equity

650,000

$

3,150,000Issuing

Par

Value

StockP

1Issuing

Stock

for

Noncash

AssetsPar

Value

StockOn

September

1,

Matrix,

Inc.

issued

100,000shares

of

$2

par

value

stock

for

land

valued

at$2,500,000.

Let’s

record

this

transaction.DrCrSept.

1

Land2,500,000Common

Stock,

$2

par

value200,000Paid-inCapital

in

Excess2,300,000of

Par

Value,

CommonExchanged

100,000

common

shares

for

land.P

1StockholdersCash

DividendsCorporation

DividendsTo

pay

a

cash

dividend,

thecorporation

must

have:A

sufficient

balance

inretained

earnings;

andThe

cash

necessary

topay

the

dividend.75%22%100%80%60%40%20%0%Common

Preferred%

of

CorporationsPayingDivendsRegular

cash

dividends

provide

a

return

to

investorsand

almost

always

affect

the

stock’s

market

value.P

2Accounting

for

Cash

DividendsThree

Important

DatesDate

of

DeclarationRecord

liabilityfor

dividend.Date

of

RecordNo

entryrequired.Date

of

PaymentRecord

payment

ofcash

to

stockholders.P

2Date

of

DeclarationRecord

liabilityfor

dividend.CrJan.

19Dr10,000Retained

EarningsCommon

Dividend

Payable10,000Declared

$1

per

share

cash

dividend.Accounting

for

Cash

DividendsOnJanuary

19,

a

$1

per

share

cash

dividend

isdeclaredon

Dana,

Inc.’s

10,000

common

shares

outstanding.

Thedividend

will

be

paid

onMarch

19to

stockholdersofrecord

onFebruary19.P

2No

entry

required

on

February

19,

the

date

of

record.Date

of

PaymentRecord

payment

ofcash

to

stockholders.DrCrMar.

19

Common

Dividends

Payable10,000CashPaid

$1

per

share

cash

dividend.10,000Accounting

for

Cash

DividendsOnJanuary

19,

a

$1

per

share

cash

dividend

isdeclaredon

Dana,

Inc.’s

10,000

common

shares

outstanding.

Thedividend

will

be

paid

onMarch

19to

stockholdersofrecord

onFebruary19.P

2$

100,000(8,500)$

91,500Stockholders'

EquityCommon

stock

$10

par

value,10,000

shares

authorized

and

outstandingRetained

earnings

deficitTotal

stockholders'

equityDeficits

and

Cash

DividendsA

deficit

is

created

when

a

company

incurscumulative

losses

or

pays

dividends

greaterthan

total

profits

earned

in

other

years.Dana,

Inc.Balance

Sheet

(Stockholders'

Equity

Section)December

31,

2013P

2Stock

DividendsA

distribution

ofacorporation’s

own

sharestoitsstockholderswithout

receiving

any

payment

in

return.Why

a

stock

dividend?Can

be

used

to

keep

the

market

price

on

the

stock

affordable.Can

provideevidenceofmanagement’sconfidence

that the

company

is

doing

well.Small

Stock

DividendDistribution

is￡

25%

of

the

previously

outstanding

shares.Large

Stock

DividendDistribution

is

>

25%

of

the

previously

outstanding

shares.100

sharesHotAir,

Inc.Common

Stock$1

parP

2Recording

a

Small

Stock

DividendSimmons

has

100,000

shares

of

$1

par

value

stock

outstanding.

OnDecember

31,

2013,

Simmons

declared

a

2%

stock

dividend,

when

thestock

wassellingfor

$10pershare. Thestock

will

bedistributedtostockholders

on

January

20,

2014. Let’s

prepare

the

December

31

entry.Dec.

31Retained

EarningsDr

Cr20,0002,00018,000Common

Stock

Dividend

DistributablePaid-In

Capital

in

Excessof

Par

ValueDeclared

a

2,000

share

(2%)

stock

dividend.2,000

×

$1

parCapitalize

retained

earnings

for

the

marketvalue

of

the

shares

to

be

distributed.(100,000

×

2%

= 2,000

×

$10

=

$20,000)P

2Before

thestockdividend.After

thestockdividend.$Common

stock

-$1

par

value,250,000

shares

authorized,100,000

shares

issued

and

outstandingPaid-in

capital

in

excess

of

parvalue100,0008,000Total

paid-in

capital$

108,000Retained

earnings35,000Total

stockholders'

equity$

143,000Simmons,

Inc.Balance

Sheet

(Stockholders'

Equity

Section)December

31,

2013P

2Common

stock

-

$1

par

value,250,000

shares

authorized,100,000

shares

issued

and

outstanding100,000$Common

stock

dividend

distributable,

2,000

shares2,000Total

common

stock

issued

and

to

be

issued$

102,000Paid-in

capital

in

excess

of

par

value26,000Total

Paid-in

capital$

128,000Retained

earnings15,000Total

stockholders'

equity$

143,000Simmons,

Inc.Balance

Sheet

(Stockholders'

Equity

Section)December

31,

2013Recording

a

Large

Stock

DividendDec.

31

Retained

EarningsDr

Cr20,00020,000Common

Stock

Dividend

DistributableDeclared

a

20,000

share

(40%)

stock

dividend.Capitalize

retained

earnings

for

the

minimum

amount

requiredby

state

law,usually

par

or

stated

value

of

the

shares.(50,000

×

40%

= 20,000

shares

×

$1

par

value

=

$20,000)Router,

Inc.

has

50,000

shares

of

$1

par

value

stockoutstanding. On

December

31,

2013,

Router

declared

a

40%stock

dividend,

when

the

stock

was

selling

for

$8

per

share.The

stock

will

be

distributed

to

stockholders

on

January

20,2014. Let’s

prepare

the

December

31

entry.P

2$10

par

valueCommon

Stock100

sharesOldSharesNewShares$5

par

valueCommon

Stock200

sharesStock

SplitsA

distribution

of

additional

shares

of

stock

tostockholders

according

to

their

percent

ownership.P

2Preferred

StockA

separate

class

of

stock,

typically

having

priority

overcommon

shares

in

.

.

.Dividend

distributionsDistribution

of

assets

in

case

of

liquidationUsually

has

a

stateddividendrateNormally

hasnovoting

rightsC

2Cumulativevs.NoncumulativeDividends

in

arrears

mustbe

paid

before

dividendsmay

be

paid

on

commonstock.

(Normal

case)Undeclared

dividends

fromcurrent

and

prior

years

donot

have

to

be

paid

infuture

years.Preferred

StockCommon

stock,

$5

par

value;

40,000

sharesauthorized,

issued

and

outstanding

$

200,000Preferred

stock,

9%,

$100

par

value;

1,000shares

authorized,

issued

and

outstanding

100,000Total

Paid-In

capital

$

300,000$

200,000Common

stock,

$5

par

value;

40,000

sharesauthorized,

issued

and

outstandingPreferred

stock,

9%,

$100

par

value;

1,000shares

authorized,

issued

and

outstandingTotal

Paid-In

capital100,000$

300,000Consider

the

following

Stockholders’

Equity

section

ofthe

Balance

Sheet.

The

Board

of

Directors

did

notdeclare

or

pay

dividends

in

2012. In

2013,

the

Boarddeclared

and

paid

cash

dividends

of

$42,000.C2If

Preferred

Stock

is

Noncumulative:Year

2012:

No

dividends

paid.Preferred$

-Common$

-Year

2013:Pay

2013

preferred

dividend.Remainder

goes

to

common.

$

9,000

$

33,000If

Preferred

Stock

is

Cumulative:Year

2012:

No

dividends

paid.Year

2013:Pay

2012

preferred

dividend

in

arrears.Pay

2013

preferred

dividend.Remainder

goes

to

common. TotalsPreferred$

-Common$

-$

9,0009,000$

24,000$

18,000$

24,000Preferred

StockC2Participating

vs.

NonparticipatingDividends

may

exceed

astated

amount

oncecommon

stockholdersreceive

a

dividend

equal

tothe

preferred

stated

rate.Dividends

are

limited

to

amaximum

amount

each

year.The

maximum

is

usually

thestated

dividend

rate.

(Normal

case)Preferred

StockReasons

for

Issuing

Preferred

StockTo

raise

capital

without

sacrificing

controlTo

boost

the

return

earned

by

common

stockholdersthrough

financial

leverageTo

appeal

to

investors

who

may

believe

the

commonstock

is

too

risky

or

that

the

expected

return

oncommon

stock

is

too

lowC2Treasury

StockTreasury

stock

represents

shares

of

a

company’s

ownstock

that

has

been

acquired.

A

corporation

might

acquireits

own

stock

to:Use

its

shares

to

buy

other

companies.Avoid

a

hostile

takeover.Reissue

to

employees

as

compensation.Support

the

market

price.Corporations

and

Treasury

StockNo

Treasury

Stock38%With

TreasuryStock62%Corporations

and

Treasury

StockNo

Treasury

Stock38%With

TreasuryStock62%P

3Purchasing

Treasury

StockTreasury

stock

is

shown

as

a

reduction

in

totalstockholders’

equityon

the

balancesheet.May

8Treasury

Stock,

CommonCashDr

Cr8,0008,000Purchased

2,000

treasury

shares

at

$4

per

shareOn

May

8,

Whitt,

Inc.

purchased

2,000

of

its

ownshares

of

stock

in

the

open

market

for

$4

per

share.P

3Selling

Treasury

Stock

at

CostJune

30CashDr

Cr400Treasury

Stock,

Common

400Sold

100

shares

of

treasury

for

$4

per

share.On

June

30,

Whitt

sold

100

shares

ofits

treasury

stock

for

$4

per

share.P

3Shares

Per

ShareTotalSale

500

$8.00$

4,000Cost

5004.002,000Paid-In

Capital$

2,000Selling

Treasury

StockAbove

CostDrCrJuly

19

Cash4,000Treasury

Stock,

Common2,000Paid-In

Capital,

Treasury

StockSold

500

treasury

shares

for

$8

per

share.2,000On

July

19,

Whitt,

Inc.

sold

an

additional

500shares

of

its

treasury

stock

for

$8

per

share.P

3Selling

Treasury

StockBelow

CostShares

Per

ShareTotalCost400

$4.00$

1,600Sale4001.50600Difference$

1,000Sold

500

tAug.

27

CashDr600CrPaid-in

Captial,

Treasury

Stock

1,000Treasury

Stock,

Commonreasury

shares

for

$1.50

per

share.1,600On

August

27,

Whitt

sold

an

additional

400shares

of

its

treasury

stock

for

$1.50

per

share.P

3Statement

of

Retained

EarningsRetained

earnings

is

the

total

cumulative

amount

ofreported

net

income

less

any

net

losses

and

dividendsdeclared

since

the

company

started

operating.Restricted

Retained

EarningsLegal

RestrictionContractual

RestrictionMost

states

restrictLoan

agreementsthe

amount

ofcan

includetreasury

stockrestrictions

on

payingpurchases

to

thedividends

below

aamount

of

retainedcertain

amount

ofearnings.retained

earnings.C

3Appropriated

Retained

EarningsA

corporation’s

directors

can

voluntarily

limit

dividendsbecause

of

a

special

need

for

cash

such

as

thepurchase

of

new

facilities.Reed,

Inc.Statement

of

RetainedEarningsFor

Year

Ended

December

31,

2013Retained

earnings,

12/31/12$

875,000Plus:

net

income155,600Less:

dividends

declared

(80,000)

Retained

earnings,

12/31/13$

950,600Appropriatedretained

earnings

(450,000)Unappropriated

retainedearnings

$

500,600

C

3Reed,

Inc.Statement

of

Retained

EarningsFor

Year

Ended

December

31,

2013Retained

earnings,

12/31/12,

as

previously

reported$

875,000Prior

period

adjustment:

Cost

of

equipmentincorrectly

expensed

(net

of$28,000

income

taxes)

72,000

Retained

earnings,

12/31/12,

as

adjusted947,000Plus:

net

income155,600Less:

dividends

declared

(80,000)

Retained

earnings,

12/31/13

$

1,022,600

Prior

Period

AdjustmentsPrior

period

adjustments

are

corrections

of

materialerrors

in

past

years’

financial

statements

that

result

in

achange

in

the

beginning

balance

of

retained

earnings.C

3Matrix,

Inc.Statement

of

Stockholders'

EquityForthe

YearEnded

December31,

2013Common

stock

and(Inmillions)

capital

in

excess

of

par

RetainedShares

Amount

Earnings

TotalBalance

atDecember31,2012

821

$

2,500

$

9,500 $

12,000Stock

sales

17

500

500Stock

repurchases

and

retirement

(17)

(260)

(925)

(1,185)Cash

dividends

declared

(150)

(150)Other,

net

70

70Net

income

5,100

5,100Balance

atDecember31,2013

821

$

2,740 $

13,595 $

16,335Matrix,

Inc.Statement

of

Stockholders'

EquityForthe

YearEnded

December31,

2013Common

stock

and(Inmillions)

capitalinexcessofpar

Retained

Shares

Amount

Earnings

Balance

atDecember31,2012

821

$

2,500

$

9,500Stock

sales

17

500Stock

repurchases

and

retirement

(17)

(260)

(925)Cash

dividends

declared

(150)Other,

net

70Net

income

5,100

Balance

atDecember31,2013

821

$ 2,740

$

13,595 Total$

12,000500(1,185)(150)705,100$

16,335Statement

ofStockholders’

EquityThis

is

a

more

inclusive

statement

than

the

statement

ofretained

earnings.C

3Optionpurchaseprice

$30per

share.Stock

OptionsMarketprice

ofstock

$75per

share.The

right

to

purchase

common

stock

at

a

fixed

price

over

aspecified

period

of

time. As

the

stock’s

price

rises

abovethe

fixed

option

price,

the

value

of

the

option

increases.Options

are

given

to

key

employees

to

motivate

them

to:focus

on

company

performance,take

a

long-run

perspective,

andremain

with

the

company.C

3Global

ViewU.S.

GAAP

and

IFRS

have

similar

procedures

for

issuing

commonstockat

par,

at

a

premium,

at

a

discount,

and

for

noncash

assets.Accounting

for

and

reporting

cash

dividends,

stock

dividends,andstock

splits,

are

consistent

under

both

U.S.

GAAP

and

IFRS.Accounting

for

treasury

stock

is

consistent

under

both

U.S.

GAAP

andIFRS. Companies

do

not

report

gains

or

losses

on

transactionsinvolving

their

own

stock.Preferred

stock

that

is

redeemable

at