MGMT 20000 Lecture Notes - Lecture 3: Accounts Receivable, Retained Earnings, Issued Shares
27 Aug 2018
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Business entity: 10 purdue students form a corporation investing /each and receive 10 shares of common stock (total shares issued is 100) The new corporation hires employees to assist in the office. Employees have earned of wages that will be paid next week. At the beginning of the year, assets at abc, inc. were ,000 and its stockholders" equity was ,000. During the year, assets decreased ,000 and liabilities increased ,000. 300=100+200 (beginning of the year) (60)=30+(90) (during the year) Expenses (negative): costs of selling products or services. Profits is often referred to as income or earnings. All profits of the company are claimed solely by stockholders. Revenues are recorded at the time the company provides products or services to customers iclicker questions. Dividends represent a return of the company"s profits to its sotckholders. In a corporation, the authority to pay a dividednt is determined by the board of directors.
