ACC 212 Lecture Notes - Lecture 2: Issued Shares, Cash Flow, Financial Statement

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orangemarten766

20 Sep 2016

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Limited numbers of shares: authorized shares: max number of shares a corp. can issue. Issued shares: numbers of shares sold and distributed: outstanding shares: numbers of shares issued numbers of treasury stock. Stocks repurchased back by corp. is not o/s. Par value: price of legal fulfillment process for issuing stock. Stated value: states requiring to put par value to indicate. Receive dividends or nay other assets first before common stock. Dividend rate types: % of stock"s par value, per share amount. Terms and features of preferred stock: convertible: can change to common stock, redeemable: can sell back stock, callable: eliminable stock, cumulative: can request for dividends at any time, participating: share dividend back to corp. Must not be retired (not outstanding & no voting rights) Reasons of treasury stock purchase: to have stock available to distribute to employees for bonuses or benefit plan or employees, to maintain favorable market price for stock or to improve, to prevent unwanted takeover.

Related Questions

The shareholdersâ equity section of Superior Corporationâs balance sheet as of December 31, 2015, is as follows: Shareholdersâ Equity Preferred stock, $100 par value; authorized, 300,000 shares; issued, 33,000 shares $3,300,000 Common stock, $5 par value; authorized, 2,000,000 shares; issued, 377,000 shares 1,885,000 Paid-in capital in excess of parâpreferred 96,000 Paid-in capital in excess of parâcommon 825,000 Retained earnings 2,920,000 $9,026,000 The following events occurred during 2016: Jan. 5 10,500 shares of authorized and unissued common stock were sold for $7 per share. 16 10,000 shares of authorized and unissued preferred stock were sold for $108 per share. Apr. 1 79,000 shares of common stock were repurchased for the treasury at a price of $21 per share. Superior uses the cost method to account for treasury stock. Sept. 1 3,500 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of $389,500. The preferred stock currently trades on the New York Stock Exchange at a price of $109 per share. Dec. 1 24,000 shares of treasury stock are reissued at a price of $24 per share. Required: 1. Prepare journal entries for each of the above transactions. 2. Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2016. 3. Calculate Superiorâs legal capital at December 31, 2016.

lilacdog156

Match each of the following stockholders' equity concepts to themost appropriate term (a - h)

. a. authorized shares

b. issued shares

c. outstanding shares

d. par value

e. common stock

f. preferred stock

g. Paid-In Capital in Excess ofPar

1. The account used to record thedifference when issue price exceeds par value of stock

2. The dollar amount assigned toeach share of stock

3. The number of shares currentlyheld by stockholders

4. A class of stock having firstrights to dividends of a corporation

5. The maximum number of shares acompany can issue to shareholders

6. The number of shares sold tostockholders

7. A class of stock that providesno preference rights to shareholders

byzantiumsnake275

Select the best answer from the list below to completestatements that follow.

authorized shares treasury stock book value per share issuedshares retained earnings par value per share outstanding sharesadditional paid-in-capital market value per share stock split

11. The number of shares sold or distributed to stockholderare____________ .

12. An arbitrary amount that is stated on the face of the stockcertificate is ______________

. 13. The number of shares issued less the number of shares heldas treasury stock are ______________________________.

14. The maximum numbers of shares a company may issueare______________

. 15. Net income that has been earned by the corporation but notpaid out as dividends are ______________________________.

16. The amount received for each share of stock in excess of parvalue is . 17. Stock issued by the firm, but then repurchased andnot retired is ________________________.

18. Distribution of additional shares of stock and reduction ofthe par value of the stock is ______________________________.

19. The selling price of the stock as indicated by the mostrecent stock transaction is___________________________________.

20. Assuming no preferred stock exists, total stockholders'equity divided by the number of shares of common stock outstandingis equal to _________________________

sangriajellyfish22

ACC 212 Lecture Notes - Lecture 2: Issued Shares, Cash Flow, Financial Statement

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