西方财务会计-原版课件15.ppt.ppt

1、Chapter 15-1Chapter 15-2Intermediate Accounting13th EditionKieso, Weygandt, and Warfield Chapter 15-31.Discuss the characteristics of the corporate form of organization.2.Identify the key components of stockholders equity.3.Explain the accounting procedures for issuing shares of stock.4.Describe the

2、 accounting for treasury stock.5.Explain the accounting for and reporting of preferred stock.6.Describe the policies used in distributing dividends.7.Identify the various forms of dividend distributions.8.Explain the accounting for small and large stock dividends, and for stock splits.9.Indicate how

3、 to present and analyze stockholders equity.Learning ObjectivesChapter 15-4Issuance of stockReacquisition of sharesThe Corporate FormCorporate CapitalPreferred StockDividend PolicyPresentation and AnalysisState corporate lawCapital stock or share systemVariety of ownership interestsFeaturesAccountin

4、g for and reporting preferred stockFinancial condition and dividend distributionsTypes of dividendsStock splitDisclosure of restrictionsPresentationAnalysisStockholders EquityChapter 15-5Three primary forms of business organizationThe Corporate Form of OrganizationProprietorshipPartnershipCorporatio

5、nLO 1 Discuss the characteristics of the corporate form of organization.Special characteristics of the corporate form:1.Influence of state corporate law.2.Use of capital stock or share system.3.Development of a variety of ownership interests.Chapter 15-6State Corporate LawThe Corporate Form of Organ

6、izationLO 1 Discuss the characteristics of the corporate form of organization.Corporation must submit articles of incorporation to the state in which incorporation is desired.General Motors - incorporated in Delaware.U.S. Steel - incorporated in New Jersey.Accounting for stockholders equity follows

7、the provisions of each states business incorporation act.Chapter 15-7Capital Stock or Share SystemThe Corporate Form of OrganizationLO 1 Discuss the characteristics of the corporate form of organization.In the absence of restrictive provisions, each share carries the following rights:1.To share prop

8、ortionately in profits and losses.2.To share proportionately in management (the right to vote for directors).3.To share proportionately in assets upon liquidation.4.To share proportionately in any new issues of stock of the same classcalled the preemptive right.Chapter 15-8Variety of Ownership Inter

9、estsThe Corporate Form of OrganizationLO 1 Discuss the characteristics of the corporate form of organization.Common stock represents basic ownership interest.Bears ultimate risks of loss.Receives the benefits of success.Not guaranteed dividends nor assets upon dissolution.Preferred stock is created

10、by contract, when stockholders sacrifice certain rights in return for other rights or privileges, usually dividend preference. Chapter 15-9AccountTwo Primary Sources of EquityCorporate CapitalLO 2 Identify the key components of stockholders equity.Chapter 15-10Issuance of StockAccounting problems: 1

11、.Par value stock.2.No-par stock.3.Stock issued with other securities.4.Stock issued in noncash transactions.5.Costs of issuing stock.LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalShares authorized - Shares sold - Shares issuedChapter 15-11Par Value StockLow par

12、values help companies avoid a contingent liability. Corporations maintain accounts for:Preferred Stock or Common Stock.Additional Paid-in CapitalLO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalChapter 15-12BE15-1: KC Corporation issued 300 shares of $10 par value

13、common stock for $4,500. Prepare KCs journal entry.Cash4,500Common stock (300 x $10) 3,000Journal entry:Additional paid-in capital1,500LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalChapter 15-13No-Par StockReasons for issuance:Avoids contingent liability.Avoids

14、confusion over recording par value versus fair market value.LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalSome states require that no-par stock have a stated value. Chapter 15-14BE15-2: Swarten Corporation issued 600 shares of no-par common stock for $8,200. Pre

15、pare Swartens journal entry if (a) the stock has no stated value, and (b) the stock has a stated value of $2 per share.Cash8,200Common stock 8,200Journal entry:LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCash8,200Common stock (600 x $2) 1,200Additional paid-in

16、 capital7,000a.b.Chapter 15-15Stock Issued with Other SecuritiesTwo methods of allocating proceeds:1.the proportional method and2.the incremental method.LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalChapter 15-16BE15-4: Ravonette Corporation issued 300 shares of

17、 $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13,500. The common stock has a market value of $20 per share, and the preferred stock has a market value of $90 per share. LO 3 Explain the accounting procedures for issuing shares of stock.Corporate Capit

18、alProportional MethodChapter 15-17LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCash13,500Preferred stock (100 x $50) 5,000Journal entry (Proportional):Additional paid-in capital-preferred3,100Common stock (300 x $10) 3,000Additional paid-in capital-common2,400B

19、E15-4: Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13,500. The common stock has a market value of $20 per share, and the preferred stock has a market value of $90 per share. Chapter 15-18BE15-4: (Variation)

20、Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13,500. The common stock has a market value of $20 per share, and the value of the preferred stock is unknown. LO 3 Explain the accounting procedures for issuing s

21、hares of stock.Corporate CapitalIncremental MethodChapter 15-19LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalCash13,500Preferred stock (100 x $50) 5,000Journal entry (Incremental):Additional paid-in capital-preferred2,500Common stock (300 x $10) 3,000Additional

22、paid-in capital-common3,000BE15-4: (Variation) Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13,500. The common stock has a market value of $20 per share, and the value of the preferred stock is unknown. Chapt

23、er 15-20Stock Issued in Noncash TransactionsThe general rule: Companies should record stock issued for services or property other than cash at either the: fair value of the stock issued or fair value of the noncash consideration received, whichever is more clearly determinable.LO 3 Explain the accou

24、nting procedures for issuing shares of stock.Corporate CapitalChapter 15-21LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalLand80,000Common stock (24,000 x $2) 48,000April 1: Issued 24,000 shares of common stock for land. The asking price of the land was $90,000;

25、the fair market value of the land was $80,000.Additional paid-in capital32,000E15-2: Kathy Crystal Corporation was organized on January 1, 2010. It is authorized to issue 500,000 shares of no par common stock with a stated value of $2 per share. Prepare the journal entry to record the following.Chap

26、ter 15-22LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalOrganization expense50,000Common stock (10,000 x $2) 20,000Aug. 1: Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize.

27、Additional paid-in capital30,000E15-2: Kathy Crystal Corporation was organized on January 1, 2010. It is authorized to issue 500,000 shares of no par common stock with a stated value of $2 per share. Prepare the journal entry to record the following.Chapter 15-23Costs of Issuing StockDirect costs in

28、curred to sell stock, such as underwriting costs, accounting and legal fees, printing costs, andtaxes, should be reported as a reduction of the amounts paid in (additional paid-in capital).LO 3 Explain the accounting procedures for issuing shares of stock.Corporate CapitalChapter 15-24Reacquisition

29、of SharesLO 4 Describe the accounting for treasury stock.Corporations purchase their outstanding stock:To provide tax-efficient distributions of excess cash to shareholders.To increase earnings per share and return on equity.To provide stock for employee stock compensation contracts or to meet poten

30、tial merger needs.To thwart takeover attempts or to reduce the number of stockholders.To make a market in the stock.Corporate CapitalChapter 15-25Purchase of Treasury StockTwo acceptable methods: Cost method (more widely used). Par or Stated value method. Treasury stock, reduces stockholders equity.

31、Corporate CapitalLO 4 Describe the accounting for treasury stock.Chapter 15-26Corporate CapitalIllustration: Pacific Company issued 100,000 shares of $1 par value common stock at a price of $10 per share. In addition, it has retained earnings of $300,000. LO 4 Describe the accounting for treasury st

32、ock.Illustration 15-4Chapter 15-27Corporate CapitalIllustration: Pacific Company issued 100,000 shares of $1 par value common stock at a price of $10 per share. In addition, it has retained earnings of $300,000. On January 20, 2010, Pacific acquires 10,000 shares of its stock at $11 per share.LO 4 D

33、escribe the accounting for treasury stock.Treasury stock 110,000Cash 110,000Chapter 15-28Corporate CapitalIllustration: Stockholders equity section for Pacific after purchase of the treasury stock.LO 4 Describe the accounting for treasury stock.Illustration 15-5Chapter 15-29Sale of Treasury StockAbo

34、ve Cost Below CostBoth increase total assets and stockholders equity. Corporate CapitalLO 4 Describe the accounting for treasury stock.Chapter 15-30Corporate CapitalCash 15,000Treasury stock11,000Paid-in capital from treasury stock4,000Illustration: Pacific acquired 10,000 shares of its treasury sto

35、ck at $11 per share. It now sells 1,000 shares at $15 per share on March 10. Pacific records the entry as follows.LO 4 Describe the accounting for treasury stock.Chapter 15-31Corporate CapitalCash 8,000Paid-in capital from treasury stock 3,000Treasury stock11,000Illustration: If Pacific sells an add

36、itional 1,000 shares of treasury stock on March 21 at $8 per share, it records the sale as follows.LO 4 Describe the accounting for treasury stock.Chapter 15-32Corporate CapitalCash 8,000Paid-in capital from treasury stock 1,000Retained earnings2,000Treasury stock11,000Illustration: Assume that Paci

37、fic sells an additional 1,000 shares at $8 per share on April 10.LO 4 Describe the accounting for treasury stock.Illustration 15-6Chapter 15-33Retiring Treasury StockThis decision results in cancellation of the treasury stock and a reduction in the number of shares of issued stock.Corporate CapitalL

38、O 4 Describe the accounting for treasury stock.Chapter 15-34Features often associated with preferred stock.1.Preference as to dividends.2.Preference as to assets in liquidation.3.Convertible into common stock.4.Callable at the option of the corporation.5.Nonvoting.LO 5 Explain the accounting for and

39、 reporting of preferred stock.Preferred StockChapter 15-35CumulativeParticipatingConvertibleCallableRedeemableLO 5 Explain the accounting for and reporting of preferred stock.Preferred StockFeatures of Preferred StockA corporation may attach whatever preferences or restrictions, as long as it does n

40、ot violate its state incorporation law.Accounting for preferred stock at issuance is similar to that for common stock.Chapter 15-36Cash 120,000Preferred stock 100,000Paid-in capital in excess of par20,000Illustration: Bishop Co. issues 10,000 shares of $10 par value preferred stock for $12 cash per

41、share. Bishop records the issuance as follows:LO 5 Explain the accounting for and reporting of preferred stock.Preferred StockChapter 15-37LO 6 Describe the policies used in distributing dividends.Dividend PolicyDividend distributions generally are based on accumulated profits (retained earnings).Fe

42、w companies pay dividends in amounts equal to their legally available retained earnings. Why?Maintain agreements with creditors.Meet state incorporation requirements.To finance growth or expansion.To smooth out dividend payments.To build up a cushion against possible losses.Chapter 15-381.Cash divid

43、ends.2.Property dividends.LO 7 Identify the various forms of dividend distributions.Types of DividendsDividends require information concerning three dates:a. Date of declarationb. Date of recordc. Date of payment3.Liquidating dividends.4.Stock dividends.Chapter 15-39Cash DividendsBoard of directors

44、vote on the declaration of cash dividends.A declared cash dividend is a liability.Companies do not declare or pay cash dividends on treasury stock.LO 7 Identify the various forms of dividend distributions.Types of DividendsChapter 15-40Illustration: What would be the journal entries made by a corpor

45、ation that declared a $50,000 cash dividend on March 10, payable on April 6 to shareholders of record on March 25?March 10 (Declaration Date)Retained earnings50,000Dividends payable50,000March 25 (Date of Record) April 6 (Payment Date)Dividends payable50,000Cash50,000DebitCreditLO 7 Identify the var

46、ious forms of dividend distributions.Cash DividendNo entryChapter 15-41Property DividendsDividends payable in assets other than cash.Restate at fair value the property it will distribute, recognizing any gain or loss.LO 7 Identify the various forms of dividend distributions.Types of DividendsChapter

47、 15-42Illustration: A dividend is declared Jan. 5th and paid Jan. 25th, in bonds held as an investment; the bonds have a book value of $100,000 and a fair market value of $135,000.Date of DeclarationInvestment in bonds35,000Gain on investment35,000andDate of IssuanceProperty dividend payable135,000I

48、nvestment in bonds135,000DebitCreditRetained earnings135,000Property dividend payable135,000LO 7 Identify the various forms of dividend distributions.Property DividendChapter 15-43Liquidating DividendsAny dividend not based on earnings reduces corporate paid-in capital.LO 7 Identify the various form

49、s of dividend distributions.Types of DividendsChapter 15-44June 1 (Payment Date)April 20 (Declaration Date)Retained earnings375,000Additional paid-in capital125,000DebitCreditDividends payable500,000Dividends payable 500,000Cash500,000BE15-12: Graves Mining Company declared, on April 20, a dividend

50、of $500,000 payable on June 1. Of this amount, $125,000 is a return of capital. Prepare the April 20 and June 1 entries for Graves.LO 7 Identify the various forms of dividend distributions.Liquidating DividendChapter 15-45Stock DividendsIssuance of own stock to stockholders on a pro rata basis, with