ADMS 3595 Chapter Notes - Chapter 15: Canada Business Corporations Act, Legal Personality, Dividend

• School: York University
• Department: Administrative Studies
• Course: ADMS 3595
• Professor: Sung Kwon

Document Summary

If only one authorized issue of capital share it is common share. 8% of preferred shares issued at 100$ = 8$ dividend per share if preferred dividend declared: features of preferred shares, can be expressed as dollar amount ex. 8$ per share: cumulative dividends on cumulative shares not paid in given year (dividends in arrears, made up in later year before profits distributed to common shares, no liability until bod declares dividend. 5% preferred share fully participating receive 5% return. If only issue 10,000 shares with no value, only put in notes: ex. P. 923: sometimes issue shares but do not require payment right away, can lend employees money to buy shares, sec require to report as reduction of shareholder"s equity, since risk of collection of payment is high. Journalize partial payment p. 923: subscriptions receivable reduction of equity (contra asset, final payment journalize p. 924, defaulted subscription accounts.