CHAPTER 6 Share Capital

Share Capital
 Legal capital
 Share Premium
Two Basic Types of Shares
 Ordinary Share
 Preference Share
Terms related to Share Capital
 Authorized Share capital
 Issued Share Capital
 Subscribed Share Capital
 Outstanding Share Capital
 Treasury Stock
Accounting for Issuance of Share Capital
 With Par Value
 Without Par Value
Share Issuances for Cash
1. With Par Value
a. Issuing Share Capital at Par
b. Issuing Share Capital Above Par
2. Without Par Value
a. Issuing No-Par Share Capital
b. Issuing No-Par Share Capital with Stated Value
Subscription of Shares
 Regular Subscriptions
 Delinquent Subscriptions
Two Methods of Accounting for Share Capital
 Journal Entry Method
 Memorandum Entry Method
Treasury Stocks
 Purchase
 Re-issuance
 Retirement
Donated Capital
Callable Preference Shares
Redeemable Preference Shares
Convertible Preference Shares
Recapitalization