Professional Documents
Culture Documents
Corporations: Organization,
Accounting
27e
human/iStock/360/Getty Images
Warren
Reeve
Duchac
Learning Objectives
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Characteristics of a Corporation
(slide 1 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Characteristics of a Corporation
(slide 2 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Characteristics of a Corporation
(slide 3 of 4)
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Organizational Structure of a Corporation
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Characteristics of a Corporation
(slide 4 of 4)
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Advantages and Disadvantages
of the Corporate Form
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Forming a Corporation
(slide 1 of 4)
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Examples of Corporations
and their States of Incorporation
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Forming a Corporation
(slide 2 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Forming a Corporation
(slide 3 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Forming a Corporation
(slide 4 of 4)
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Stockholders’ Equity
(slide 1 of 5)
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Sources of Stockholders’ Equity
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Stockholders’ Equity
(slide 2 of 5)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stockholders’ Equity
(slide 3 of 5)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stockholders’ Equity
(slide 4 of 5)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stockholders’ Equity
(slide 5 of 5)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Characteristics of Stock
(slide 1 of 3)
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Authorized, Issued, and Outstanding Stock
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Characteristics of Stock
(slide 2 of 3)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Characteristics of Stock
(slide 3 of 3)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Classes of Stock
(slide 1 of 5)
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Classes of Stock
(slide 2 of 5)
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Dividend Preferences
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Classes of Stock
(slide 3 of 5)
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Classes of Stock
(slide 4 of 5)
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Classes of Stock
(slide 5 of 5)
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Example Exercise Dividends per Share
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Issuing Stock
(slide 1 of 4)
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Issuing Stock
(slide 2 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Issuing Stock
(slide 3 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Issuing Stock
(slide 4 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Premium on Stock
(slide 1 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Premium on Stock
(slide 2 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Premium on Stock
(slide 3 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Premium on Stock
(slide 4 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
No-Par Stock
(slide 1 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
No-Par Stock
(slide 2 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
No-Par Stock
(slide 3 of 4)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
No-Par Stock
(slide 4 of 4)
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Example Exercise Entries for Issuing Stock
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Cash Dividends
(slide 1 of 5)
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Cash Dividends
(slide 2 of 5)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Cash Dividends
(slide 3 of 5)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Cash Dividends
(slide 4 of 5)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Cash Dividends
(slide 5 of 5)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Example Exercise Entries for Cash Dividends
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stock Dividends
(slide 1 of 6)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stock Dividends
(slide 2 of 6)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stock Dividends
(slide 4 of 6)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stock Dividends
(slide 5 of 6)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stock Dividends
(slide 6 of 6)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Example Exercise Entries for Stock Dividends
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stock Splits
(slide 1 of 3)
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Stock Splits
(slide 2 of 3)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stock Splits
(slide 3 of 3)
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Stock Split: Before and After
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Treasury Stock Transactions
(slide 1 of 8)
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Treasury Stock Transactions
(slide 2 of 8)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Treasury Stock Transactions
(slide 3 of 8)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Treasury Stock Transactions
(slide 4 of 8)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Treasury Stock Transactions
(slide 5 of 8)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Treasury Stock Transactions
(slide 6 of 8)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Treasury Stock Transactions
(slide 7 of 8)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Example Exercise Entries for Treasury Stock
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stockholders’ Equity on the Balance Sheet
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stockholders’ Equity Section of a
Balance Sheet
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Example Exercise Reporting Stockholders’ Equity
(slide 1 of 2)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Example Exercise Reporting Stockholders’ Equity
(slide 2 of 2)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reporting Retained Earnings
(slide 1 of 2)
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Reporting Retained Earnings
(slide 2 of 2)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Retained Earnings Statement
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Example Exercise Retained Earnings Statement
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Restrictions
(slide 1 of 2)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Restrictions
(slide 2 of 2)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Prior Period Adjustments
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Statement of Stockholders’ Equity
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Statement of Stockholders’ Equity
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reporting Stockholders’ Equity for Mornin’ Joe
(slide 1 of 3)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reporting Stockholders’ Equity for Mornin’ Joe
(slide 2 of 3)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reporting Stockholders’ Equity for Mornin’ Joe
(slide 3 of 3)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Financial Analysis and Interpretation:
Earnings per Share (slide 1 of 2)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Financial Analysis and Interpretation:
Earnings per Share (slide 2 of 2)
• If a company has preferred stock outstanding, any preferred
dividends are subtracted from net income.
o This is because the numerator represents only those earnings available
to the common shareholders.
• To illustrate, the following data (in thousands) were taken
from recent financial statements of Google:
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Example Exercise Earnings per Share
(slide 2 of 2)
©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.