財務會計FA_ch

1、財務會計FA3_ch15School of Management,HUSTStockholders EquityChapter 15Intermediate Accounting12th EditionKieso, Weygandt, and WarfieldChapter Prepared by Coby Harmon, University of California, Santa Barbara15-1School of Management,HUSTStockholders EquityThe Corporate Corporate Preferred Dividend Present

2、ation FormCapitalStockPolicyand AnalysisState Issuance of FeaturesFinancial Presentationcorporate lawstockcondition and Accounting Analysisdividend Capital stock Reacquisition for and distributionsor share of sharesreporting systempreferred Types of stockdividendsVariety of ownership Stock splitinte

3、restsDisclosure of restrictionsChapter 15-2School of Management,HUSTLearning Objectives11.Discuss the characteristics of the corporate form of organization.2.Identify the key components of stockholders equity.3.Explain the accounting procedures for issuing shares of stock.4.Describe the accounting f

4、or treasury stock.5.Explain the accounting for and reporting of preferred stock.6.Describe the policies used in distributing dividends.7.Identify the various forms of dividend distributions.78.Explain the accounting for small and large stock dividends, and for stock splits.9.Indicate how to present

5、and analyze stockholders equity.Chapter 15-3School of Management,HUSTThe Corporate Form of OrganizationThree primary forms of business organizationProprietorshipPartnershipCorporationSpecial characteristics of the corporate form:1.Influence of state corporate law.2.Use of capital stock or share syst

6、em.3.Development of a variety of ownership interests.Chapter LO 1 Discuss the characteristics of the corporate form of organization.15-4School of Management,HUSTThe Corporate Form of OrganizationState Corporate LawCorporation must submita rticles of incorporation to the state in which incorporation

7、is desired.General Motors-incorporated in Delaware.U.S. Steel-incorporated in New Jersey.Accounting for stockholders equity follows the provisions of each states business incorporation act.Chapter LO 1 Discuss the characteristics of the corporate form of organization.15-5School of Management,HUSTThe

8、 Corporate Form of OrganizationCapital Stock or Share SystemIn the absence of restrictive provisions, each share carries the following rights:1.To share proportionately in profits and losses.2.To share proportionately in management (the right to vote for directors).3.To share proportionately in asse

9、ts upon liquidation.4.To share proportionately in any new issues of stock of the same classcalled thep reemptive right.Chapter LO 1 Discuss the characteristics of the corporate form of organization.15-6School of Management,HUSTThe Corporate Form of OrganizationVariety of Ownership InterestsCommon st

10、ock represents basic ownership interest.Bears ultimate risks of loss.Receives the benefits of success.Not guaranteed dividends nor assets upon dissolution.Preferred stockis created by contract, when stockholders sacrifice certain rights in return for other rights or privileges, usually dividend pref

11、erence. Chapter LO 1 Discuss the characteristics of the corporate form of organization.15-7School of Management,HUSTCorporate CapitalCommon StockAccountContributed Additional Paid-Capitalin CapitalAccountPreferred StockAccountTwo Primary Retained EarningsSources of AccountEquityAssets Liabilities =L

12、ess:EquityTreasury StockAccountChapter LO 2 Identify the key components of stockholders equity.15-8School of Management,HUSTChapter 15-9School of Management,HUSTCorporate CapitalIssuance of StockShares authorized -Shares sold -Shares issuedAccounting problems:1.Par value stock.2.No-par stock.3.Stock

13、 issued with other securities.4.Stock issued in noncash transactions.5.Costs of issuing stock.Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-10School of Management,HUSTCorporate CapitalPar Value StockLow par values help companies avoid a contingent liability. Corporati

14、ons maintain accounts for:Preferred Stock or Common Stock.Additional Paid-in CapitalChapter LO 3 Explain the accounting procedures for issuing shares of stock.15-11School of Management,HUSTCorporate CapitalBE15-1: Lost Vikings Corporation issued 300 shares of $10 par value common stock for $4,100. P

15、repare Lost Vikings journal entry.Journal entry:Cash4,100Common stock (300 x $10)3,000Additional paid-in capital1,100Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-12School of Management,HUSTExample:300070Chapter 15-13School of Management,HUSTExample:300070五、本次發(fā)行情況股票種類

16、人民幣普通股(A股)每股面值1.00元發(fā)行股數(shù)本次擬公開發(fā)行的股票數(shù)量不超過3,700萬股,按發(fā)行3,700萬股計算,占發(fā)行后總股本的25.17%發(fā)行方式采用網下向詢價對象配售與網上資金申購定價發(fā)行相結合的方式發(fā)行對象符合資格的詢價對象和已開立深圳證券賬戶的投資者(國家法律、法規(guī)禁止認購者除外)最新主要指標10-04-2110-03-3109-12-3108-12-3107-12-31每股收益(元) -0.0392 0.9700 0.6800 0.6400 每股凈資產(元) -2.8600 2.9200 1.9956 1.4654 凈資產收益率() -1.3700 33.3700 34.086

17、0 43.8047 總股本(億股) 1.4700 1.1000 1.1000 1.1000 1.1000 實際流通A股(億股) 0.2960 -限售流通A股(億股) 1.1000 -暫鎖定人民幣普通股0.0740 -(億股) Chapter 最新指標變動原因新股上市15-14School of Management,HUSTCorporate CapitalNo-Par StockReasons for issuance:Avoids contingent liability.Avoids confusion over recording par value versus fair marke

18、t value.Some states require that no-par stock have a stated value. Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-15School of Management,HUSTCorporate CapitalBE15-2: Shinobi Corporation issued 600 shares of no-par common stock for $10,200. Prepare Shinobis journal entr

19、y if (a) the stock has no stated value, and (b) the stock has a stated value of $2 per share.Journal entry:a.Cash10,200Common stock 10,200b.Cash10,200Common stock (600 x $2)1,200Additional paid-in capital9,000Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-16School of M

20、anagement,HUSTCorporate CapitalStock Issued with Other SecuritiesTwo methods of allocating proceeds:1.the proportionalmethod and2.the incrementalmethod.Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-17School of Management,HUSTCorporate CapitalBE15-4: Primal Rage Corpor

21、ation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $14,200. The common stock has a market value of $20 per share, and the preferred stock has a market value of $90 per share. NumberAmountTotalPercentCommon stock300x$ 20.00=$ 6,0004

22、0%Preferred stock100x 90.00 9,00060%Fair Market Value$ 15,000100%Allocation:CommonPreferredProportionalIssue price$ 14,200$ 14,200Allocation %40%60%MethodTotal$ 5,680$ 8,520Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-18School of Management,HUSTCorporate CapitalBE15-

23、4: Primal Rage Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $14,200. The common stock has a market value of $20 per share, and the preferred stock has a market value of $90 per share. Journal entry (Proportional):Cash14

24、,200Preferred stock (100 x $50)5,000Additional paid-in capital-preferred3,520Common stock (300 x $10)3,000Additional paid-in capital-common2,680Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-19School of Management,HUSTCorporate CapitalBE15-4: V(ariation) Primal Rage Co

25、rporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $14,200. The common stock has a market value of $20 per share, and the value of the preferred stock isu nknown. NumberAmountTotalCommon stock300x$ 20.00=$ 6,000Preferred stock1

26、00x - Fair Market Value$ 6,000Allocation:CommonPreferredIncrementalIssue price$ 14,200MethodCommon (6,000)Total$ 6,000$ 8,200Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-20School of Management,HUSTCorporate CapitalBE15-4: V(ariation) Primal Rage Corporation issued 30

27、0 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $14,200. The common stock has a market value of $20 per share, and the value of the preferred stock isu nknown. Journal entry (Incremental):Cash14,200Preferred stock (100 x $50)5,000Additional pa

28、id-in capital-preferred3,200Common stock (300 x $10)3,000Additional paid-in capital-common3,000Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-21School of Management,HUSTCorporate CapitalStock Issued in Noncash TransactionsThe general rule:Companies should record stock

29、issued for services or property other than cash at either the: fair value of the stock issued or fair value of the noncash consideration received, whichever is more clearly determinable.Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-22School of Management,HUSTCorporate

30、 CapitalE15-2: Kathleen Battle Corporation was organized on January 1, 2007. It is authorized to issue 500,000 shares of no par common stock with a stated value of $1 per share. P repare the journal entryto record the following.April 1Issued 24,000 shares of common stock for land. The asking price o

31、f the land was $90,000; the fair market value of the land was $80,000.Land80,000Common stock (24,000 x $1)24,000Additional paid-in capital56,000Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-23School of Management,HUSTCorporate CapitalE15-2: Kathleen Battle Corporation

32、 was organized on January 1, 2007. It is authorized to issue 500,000 shares of no par common stock with a stated value of $1 per share. P repare the journal entryto record the following.Aug. 1Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered

33、in helping the company organize.Organization expense50,000Common stock (10,000 x $1)10,000Additional paid-in capital40,000Example:Page 732Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-24School of Management,HUSTCorporate CapitalCosts of Issuing StockDirect costs incur

34、red to sell stock, such as underwriting costs, accounting and legal fees, printing costs, andtaxes, should be reported as ar eductionof the amounts paid in (additional paid-in capital).Note:Page 733The case:733Chapter LO 3 Explain the accounting procedures for issuing shares of stock.15-25School of

35、Management,HUSTCorporate CapitalReacquisition of SharesCorporations purchase their outstanding stock:To provide tax-efficient distributions of excess cash to shareholders.To increase earnings per share and return on equity.To provide stock for employee stock compensation contracts or to meet potenti

36、al merger needs.To thwart takeover attempts or to reduce the number of stockholders.To make a market in the stock.Chapter LO 4 Describe the accounting for treasury stock.15-26School of Management,HUSTCorporate CapitalPurchase of Treasury StockTwo acceptable methods: Cost method (more widely used).Pa

37、r or Stated value method. Treasury stock, reduces stockholders equity.Chapter LO 4 Describe the accounting for treasury stock.15-27School of Management,HUSTCorporate CapitalIllustration: UC Company originally issued 15,000 shares of $1 par, common stock for $25 per share. Record the journal entry fo

38、r the following transaction:stApril 1the company re-acquired 1,000 shares for $28 per share.Treasury stock (1,000 x $28)28,000Cash 28,000Example:Page 736Chapter LO 4 Describe the accounting for treasury stock.15-28School of Management,HUSTCorporate CapitalSale of Treasury StockAbove Cost Below CostB

39、oth increase total assets and stockholders equity. Chapter LO 4 Describe the accounting for treasury stock.15-29School of Management,HUSTCorporate CapitalIllustration: UC Company originally issued 15,000 shares of $1 par, common stock for $25 per share. Record the journal entry for the following tra

40、nsaction:stJune 1Sold 500 shares of its Treasury Stock for $30 per share.Cash (500 x $30)15,000Treasury stock (500 x $28)14,000Paid-in capital treasury stock 1,000Chapter LO 4 Describe the accounting for treasury stock.15-30School of Management,HUSTCorporate CapitalIllustration: UC Company originall

41、y issued 15,000 shares of $1 par, common stock for $25 per share. Record the journal entry for the following transaction:thOct. 15Sold 300 shares of its Treasury Stock for $9 per share.Cash (300 x $9)2,700Treasury stock (300 x $28)8,400Paid-in capital treasury stock 1,000Limited to Retained earnings

42、4,700balance on handChapter LO 4 Describe the accounting for treasury stock.15-31School of Management,HUSTCorporate CapitalIllustration: UC Company originally issued 15,000 shares of $1 par, common stock for $25 per share. Record the journal entry for the following transaction:thOct. 30Sold 100 shar

43、es of its Treasury Stock for $11 per share.Cash (100 x $11)1,100Treasury stock (100 x $28)2,800Retained earnings 1,700Chapter LO 4 Describe the accounting for treasury stock.15-32School of Management,HUSTCorporate CapitalIllustration: UC Company originally issued 15,000 shares of $1 par, common stoc

44、k for $25 per share. Record the journal entry for the following transaction:thNov. 10Retired remaining 100 shares of its Treasury Stock.Common stock (100 x $1)100Paid-in capital common( 1 00 x $24)2,400Treasury stock (100 x $28)2,800Retained earnings 300Chapter LO 4 Describe the accounting for treas

45、ury stock.15-33School of Management,HUSTCorporate CapitalIllustration 15-4 Stockholders Equity with No Treasury StockChapter LO 4 Describe the accounting for treasury stock.15-34School of Management,HUSTCorporate CapitalIllustration 15-5 Stockholders Equity with Treasury StockChapter LO 4 Describe t

46、he accounting for treasury stock.15-35School of Management,HUSTPreferred StockFeatures often associated with preferred stock.1.Preference as to dividends.2.Preference as to assets in liquidation.3.Convertible into common stock.4.Callable at the option of the corporation.5.Nonvoting.Chapter 15-36LO 5

47、 Explain the accounting for and reporting of preferredstock.School of Management,HUSTPreferred StockSpecific Features of Preferred StockCumulativeA corporation may attach Participatingwhatever preferences or Convertiblerestrictions, as long as it does not violate its state Callableincorporation law.

48、RedeemableAccounting for preferred stock at issuance is similar to that for common stock.Chapter 15-37LO 5 Explain the accounting for and reporting of preferredstock.School of Management,HUSTDividend PolicyDividend distributions generally are based on accumulated profits (retained earnings).Few comp

49、anies pay dividends in amounts equal to their legally available retained earnings.Why?Maintain agreements with creditors.Meet state incorporation requirements.To finance growth or expansion.To smooth out dividend payments.To build up a cushion against possible losses.Chapter LO 6 Describe the polici

50、es used in distributing dividends.15-38School of Management,HUSTTypes of Dividends1.Cash dividends.3.Liquidating dividends.2.Property dividends.4.Stock dividends.Dividends require information concerning three dates:a.Date of declarationb.Date of recordc.Date of paymentChapter LO 7 Identify the vario

51、us forms of dividend distributions.15-39School of Management,HUSTTypes of DividendsCash DividendsBoard of directors vote on the declaration of cash dividends.A declared cash dividend is a liability.Companies do not declare or pay cash dividends on treasury stock.Chapter LO 7 Identify the various for

52、ms of dividend distributions.15-40School of Management,HUSTCash DividendIllustration What would be the journal entries made by a corporation that declared a $50,000 cash dividend on March 10, payable on April 6 to shareholders of record on March 25?DebitCreditMarch 10 (Declaration Date)Retained earn

53、ings50,000Dividends payable50,000March 25 (Date of Record)No entryApril 6 (Payment Date)Dividends payable50,000Cash50,000Chapter LO 7 Identify the various forms of dividend distributions.15-41School of Management,HUSTTypes of DividendsProperty DividendsDividends payable in assets other than cash.Res

54、tate at fair value the property it will distribute, recognizing any gain or loss.Chapter LO 7 Identify the various forms of dividend distributions.15-42School of Management,HUSTProperty DividendIllustration A dividend is declared Jan. 5th and paid Jan. 25th, in bonds held as an investment; the bonds

55、 have a book value of $100,000 and a fair market value of $135,000.DebitCreditDate of DeclarationInvestment in bonds35,000Gain on investment35,000andRetained earnings135,000Property dividend payable135,000Date of IssuanceProperty dividend payable135,000Investmentin bonds135,000Chapter LO 7 Identify

56、the various forms of dividend distributions.15-43School of Management,HUSTTypes of DividendsLiquidating DividendsAny dividend not based on earnings reduces corporate paid-in capital.Chapter LO 7 Identify the various forms of dividend distributions.15-44School of Management,HUSTLiquidating DividendBE

57、15-12 Radical Rex Mining Company declared, on April 20, a dividend of $700,000 payable on June 1. Of this amount, $125,000 is a return of capital. Prepare the April 20 and June 1 entries for Radical Rex.DebitCreditApril 20 (Declaration Date)Retained earnings575,000Additional paid-in capital125,000Di

58、vidends payable700,000June 1 (Payment Date)Dividends payable 700,000Cash700,000Chapter LO 7 Identify the various forms of dividend distributions.15-45School of Management,HUSTTypes of DividendsStock DividendsIssuance of own stock to stockholders on a pro rata basis, without receiving any consideration.When stock dividend is less than 2025 percent of the common