所有者权益ch11Stockholders_39;Equity

Stockholders’EquityChapter11IntermediateAccounting12thEditionKieso,Weygandt,andWarfield1.Identifythekeycomponentsofstockholders’equity.2.Explaintheaccountingforissuingsharesofstock.3.Describetheaccountingfortreasurystock.4.Explaintheaccountingforpreferredstock.5.Identifythevariousformsofdividenddistributions.6.Explaintheaccountingforsmallandlargestockdividends,andforstocksplits.LearningObjectivesIssuanceofstockReacquisitionofsharesTheCorporateFormCorporateCapitalPreferredStockDividendPolicyCapitalstockorsharesystemVarietyofownershipinterestsFeaturesAccountingforpreferredstockdividenddistributionsTypesofdividendsStocksplitStockholders’EquityThreeprimaryformsofbusinessorganizationTheCorporateFormofOrganizationProprietorshipPartnershipCorporationSpecialcharacteristicsofthecorporateform:1.Influenceofstatecorporatelaw.2.Useofcapitalstockorsharesystem.3.Developmentofavarietyofownershipinterests.StateCorporateLawCorporationmustsubmitarticlesofincorporationtothestateinwhichincorporationisdesired.GeneralMotors-incorporatedinDelaware.U.S.Steel-incorporatedinNewJersey.CapitalStockorShareSystemIntheabsenceofrestrictiveprovisions,eachsharecarriesthefollowingrights:1.Toshareproportionatelyinprofitsandlosses.2.Toshareproportionatelyinmanagement(therighttovotefordirectors).3.Toshareproportionatelyinassetsuponliquidation.4.Toshareproportionatelyinanynewissuesofstockofthesameclass—calledthepreemptiveright.VarietyofOwnershipInterestsCommonstockrepresentsbasicownershipinterest.Bearsultimaterisksofloss.Receivesthebenefitsofsuccess.Notguaranteeddividendsnorassetsupondissolution.Preferredstockiscreatedbycontract,whenstockholders’sacrificecertainrightsinreturnforotherrightsorprivileges,usuallydividendpreference.ContributedCapitalRetainedEarningsAccountAdditionalPaid-inCapitalAccountLess:TreasuryStockAccountTwoPrimarySourcesofEquityCorporateCapitalCommonStockAccountPreferredStockAccountAssets–Liabilities=EquityIssuanceofStockAccountingproblems:1.Parvaluestock.2.No-parstock.3.Stockissuedwithothersecurities.4.Stockissuedinnoncashtransactions.5.Costsofissuingstock.Sharesauthorized-Sharessold-SharesissuedParValueStockCorporationsmaintainaccountsfor:PreferredStockorCommonStock.AdditionalPaid-inCapitalBE15-1:LostVikingsCorporationissued300sharesof$10parvaluecommonstockfor$4,100.PrepareLostVikings’journalentry.Cash4,100Commonstock(300x$10)3,000Additionalpaid-incapital1,100No-ParStockReasonsforissuance:Avoidscontingentliability.Avoidsconfusionoverrecordingparvalueversusfairmarketvalue.Somestatesrequirethatno-parstockhaveastatedvalue.BE15-2:ShinobiCorporationissued600sharesofno-parcommonstockfor$10,200.PrepareShinobi’sjournalentryif(a)thestockhasnostatedvalue,and(b)thestockhasastatedvalueof$2pershare.Cash10,200Commonstock10,200Journalentry:Cash10,200Commonstock(600x$2)1,200Additionalpaid-incapital9,000a.b.StockIssuedwithOtherSecuritiesTwomethodsofallocatingproceeds:1.theproportionalmethodand2.theincrementalmethod.BE15-4:PrimalRageCorporationissued300sharesof$10parvaluecommonstockand100sharesof$50parvaluepreferredstockforalumpsumof$14,200.Thecommonstockhasamarketvalueof$20pershare,andthepreferredstockhasamarketvalueof$90pershare.Cash14,200Preferredstock(100x$50)5,000Additionalpaid-incapital-preferred3,520Commonstock(300x$10)3,000Additionalpaid-incapital-common2,680NumberAmountTotalPercentCommonstock300x20.00$=6,000$40%Preferredstock100x90.009,00060%FairMarketValue15,000$100%Allocation:CommonPreferredIssueprice14,200$14,200$Allocation%40%60%Total5,680$8,520$ProportionalMethodBE15-4:(Variation)PrimalRageCorporationissued300sharesof$10parvaluecommonstockand100sharesof$50parvaluepreferredstockforalumpsumof$14,200.Thecommonstockhasamarketvalueof$20pershare,andthevalueofthepreferredstockisunknown.Cash14,200Preferredstock(100x$50)5,000Journalentry(Incremental):Additionalpaid-incapital-preferred3,200Commonstock(300x$10)3,000Additionalpaid-incapital-common3,000NumberAmountTotalCommonstock300x20.00$=6,000$Preferredstock100x-FairMarketValue6,000$Allocation:CommonPreferredIssueprice14,200$Common(6,000)Total6,000$8,200$IncrementalMethodStockIssuedinNoncashTransactionsThegeneralrule:Companiesshouldrecordstockissuedforservicesorpropertyotherthancashateitherthe:fairvalueofthestockissuedorfairvalueofthenoncashconsiderationreceived,whicheverismoreclearlydeterminable.Land80,000Commonstock(24,000x$1)24,000April1Issued24,000sharesofcommonstockforland.Theaskingpriceofthelandwas$90,000;thefairmarketvalueofthelandwas$80,000.Additionalpaid-incapital56,000E15-2:KathleenBattleCorporationwasorganizedonJanuary1,2007.Itisauthorizedtoissue500,000sharesofnoparcommonstockwithastatedvalueof$1pershare.Organizationexpense50,000Commonstock(10,000x$1)10,000Aug.1Issued10,000sharesofcommonstocktoattorneysinpaymentoftheirbillof$50,000forservicesrenderedinhelpingthecompanyorganize.Additionalpaid-incapital40,000E15-2:KathleenBattleCorporationwasorganizedonJanuary1,2007.Itisauthorizedtoissue500,000sharesofnoparcommonstockwithastatedvalueof$1pershare.CostsofIssuingStockDirectcostsincur