ACCT-UB 1 Lecture 15: Shareholder's Equity
29 Nov 2016
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Stock split | getting y shares to replace every x shares you own (ie. splitting stock value into half, but doubling the amount of shares) no journal entry to record this transaction. Stock dividend | getting y new shares for every x shares you own. *see it as getting dividend as cash, then using it to purchase new shares journal entry: transfers $ from retained earnings to common stock and additional paid-in capital (se remains same) Employee stock options | rights granted by rms to employees to acquire shares of common stock at a speci ed price over a stipulated interval of time. June 15, 2005, fas123r calls for mandatory expensing of all stock-based compensation. = less likely to grant employees stock options as it is mandatory to be expensed. Issue shares for stock for cash - increase. Payment of previous declared cash dividend - no e ect. *treasury stock always recorded at cost (not par value or market price)
