COMM 293 Lecture Notes - Lecture 12: Dividend, Retained Earnings, Issued Shares
Document Summary
Ownership of a corporation: benefits of share ownership, authorized, issued and outstanding shares. Explain the role of share capital in the capital structure of a corporation. Describe the characteristics of common shares and analyze transactions affecting common shares. The text materials contain many useful exhibits for this chapter. In addition, other chapter features useful in the teaching of this text are contained in this manual. This chapter discusses accounting for owners" equity for corporations. Sole proprietorships and partnerships are discussed in chapter supplement a. Except for owners" equity, accounting basically is unaffected by the type of business organization. Each specific source of owners" equity should be accounted for separately. The two basic sources of owners" equity for a corporation are contributed capital and retained earnings. Separate accounts are kept for each type of share capital. Frequently a corporation purchases its own shares in the marketplace. Shares previously issued by the corporation and subsequently reacquired are cancelled.
