ACCT 2301 Lecture 13: Notes Chapter 13

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rubymallard294

6 Nov 2018

School

Texas A&M University-Kingsville

Department

Accounting

Course

ACCT 2301

Professor

Kendra Jo Huff

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Document Summary

Separate legal entity: a corporation is a separate legal entity. Authorized stock: total number of shares that can be issued. Issued stock: stock that has been issued at some point in time. Treasurer stock: stock that has been issued and then repurchased by the corporation. Common stock: represents basic ownership of the corporation. Preferred stock: receive dividends before common stockholders and the share of investment before common stockholders (but don t have right to vote) Par value: minimum value that stock can be issued for (arbitrary amount. No-par: stock that has no amount (par) assigned to it. Stated value stock: no-par stock that has been assigned an amount similar to par value. Paid in capital: stockholder investment (common stock, preferred stock, paid in capital excess of par) Retained earnings: accumulated profit and losses, less dividends, over the life of the corporation. Stock issued in exchange for asset other than cash:

Related Questions

Match the items below by selecting the appropriate number in thespace provided.

Net income retained in the corporation.
The amount that must be retained in the business for theprotection of creditors.
Preferred stockholders have a right to receive current andunpaid prior-year dividends before common stockholders receive anydividends.
Creditors only have corporate assets to satisfy theirclaims.
Responsible to stockholders for corporate activity.
The amount assigned to each share of stock in the corporatecharter.
Unit of ownership in a corporation.
Enables stockholders to maintain their same percentageownership when new shares are issued.
Corporation's own stock that has been reacquired by thecorporation but not retired.
Total amount paid-in on capital stock.

1.	Limited liability
2.	Capital stock
3.	Board of directors
4.	Paid-in capital
5.	Retained earnings
6.	Preemptive right
7.	Par value
8.	Legal capital
9.	Treasury stock
10.	Cumulative feature

pearzebra975

Match the items below by entering the appropriate answer letter choice from the column provided on the right.

	1.Net income retained in the corporation.
	2. Creditors cannot go after stockholderâs personal assets to satisfy their claims.
	3. Retained earnings currently unavailable for dividends.
	4. A corporationâs own stock that has been reacquired by the corporation.
	5. Responsible to stockholders for corporate activity.
	6. The amount assigned to each share of stock in the corporate charter.
.	7. The date the board of directors formally declares the dividend and announces it to stockholders.
	8. A debit balance in retained earnings.
	9. Capital contributed by stockholders.
	10. The death of a stockholder or employee does not affect the going concern of the corporation.
	11. The company determines ownership of the outstanding shares for dividend purposes.
	12. Unit of ownership in a corporation.
-	13. This type of dividend for the stockholder results in more shares of stock, but no change in ownership interest.
	14. The issuance of additional shares of stock to stockholders accompanied by a reduction in the par or stated value per share. This stock transaction does not require an accounting entry.
	15. The acts of the owners (stockholders) do not bind the corporation.

A.	Par value
B.	Record date
C.	Retained Earnings
D.	Indefinite life
E.	Treasury stock
F.	Stock split
G.	Declaration date
H.	Retained Earnings restrictions
I.	Stock dividend
J.	Capital stock
K.	Deficit
L.	Paid-in capital
M.	Cash dividend
N.	Board of directors
O.	Separate legal entity
P.	Limited liability

lilachorse885

1.If a stock is sold on the secondary market between one investor and another, what effect does that have on the financial statements of the company that originally issued the stock?

		Its revenues increase
		Its "in excess" equity increases
		It has a new asset
		There is no effect since the sale or trade is among investors only

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QUESTION 10

Which of the following is an advantage of the corporate form of business organization?

double taxation

amount of regulation

limited liability

entrenched management

Ownership and profit distribution in a sole proprietorship are generally seen on its balance sheet respectively as

A personal capital account and dividends

Common stock and dividends

Common stock and withdrawals

A personal capital account and withdrawals

QUESTION 12

A major difference between common and preferred stock is that usually

Common stockholders receive dividends before preferred

Common stockholders can vote and preferred cannot

Preferred stockholders can only be other institutions and not individuals

Common stockholders have unlimited liability and preferred do not

5.If common stock is issued and sold as "no par"

		It is treated as preferred stock
		It becomes a liability account
		An "additional paid in capital (in excess)" will be recorded
		An "additional paid in capital (in excess)" will not be recorded

coralfish995

ACCT 2301 Lecture 13: Notes Chapter 13

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