西方财务会计培训教程(英文版)(ppt 68页)

,CHAPTER15,STOCKHOLDERSEQUITY,IntermediateAccounting13thEditionKieso,Weygandt,andWarfield,Discussthecharacteristicsofthecorporateformoforganization.Identifythekeycomponentsofstockholdersequity.Explaintheaccountingproceduresforissuingsharesofstock.Describetheaccountingfortreasurystock.Explaintheaccountingforandreportingofpreferredstock.Describethepoliciesusedindistributingdividends.Identifythevariousformsofdividenddistributions.Explaintheaccountingforsmallandlargestockdividends,andforstocksplits.Indicatehowtopresentandanalyzestockholdersequity.,LearningObjectives,IssuanceofstockReacquisitionofshares,TheCorporateForm,CorporateCapital,PreferredStock,DividendPolicy,PresentationandAnalysis,StatecorporatelawCapitalstockorsharesystemVarietyofownershipinterests,FeaturesAccountingforandreportingpreferredstock,FinancialconditionanddividenddistributionsTypesofdividendsStocksplitDisclosureofrestrictions,PresentationAnalysis,StockholdersEquity,Threeprimaryformsofbusinessorganization,TheCorporateFormofOrganization,Proprietorship,Partnership,Corporation,LO1Discussthecharacteristicsofthecorporateformoforganization.,Specialcharacteristicsofthecorporateform:Influenceofstatecorporatelaw.Useofcapitalstockorsharesystem.Developmentofavarietyofownershipinterests.,StateCorporateLaw,TheCorporateFormofOrganization,LO1Discussthecharacteristicsofthecorporateformoforganization.,Corporationmustsubmitarticlesofincorporationtothestateinwhichincorporationisdesired.GeneralMotors-incorporatedinDelaware.U.S.Steel-incorporatedinNewJersey.,Accountingforstockholdersequityfollowstheprovisionsofeachstatesbusinessincorporationact.,CapitalStockorShareSystem,TheCorporateFormofOrganization,LO1Discussthecharacteristicsofthecorporateformoforganization.,Intheabsenceofrestrictiveprovisions,eachsharecarriesthefollowingrights:Toshareproportionatelyinprofitsandlosses.Toshareproportionatelyinmanagement(therighttovotefordirectors).Toshareproportionatelyinassetsuponliquidation.Toshareproportionatelyinanynewissuesofstockofthesameclasscalledthepreemptiveright.,VarietyofOwnershipInterests,TheCorporateFormofOrganization,LO1Discussthecharacteristicsofthecorporateformoforganization.,Commonstockrepresentsbasicownershipinterest.Bearsultimaterisksofloss.Receivesthebenefitsofsuccess.Notguaranteeddividendsnorassetsupondissolution.,Preferredstockiscreatedbycontract,whenstockholderssacrificecertainrightsinreturnforotherrightsorprivileges,usuallydividendpreference.,ContributedCapital,RetainedEarningsAccount,AdditionalPaid-inCapitalAccount,Less:TreasuryStockAccount,TwoPrimarySourcesofEquity,CorporateCapital,LO2Identifythekeycomponentsofstockholdersequity.,CommonStockAccount,PreferredStockAccount,AssetsLiabilities=Equity,IssuanceofStock,Accountingproblems:Parvaluestock.No-parstock.Stockissuedwithothersecurities.Stockissuedinnoncashtransactions.Costsofissuingstock.,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,Sharesauthorized-Sharessold-Sharesissued,ParValueStock,Lowparvalueshelpcompaniesavoidacontingentliability.Corporationsmaintainaccountsfor:PreferredStockorCommonStock.AdditionalPaid-inCapital,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,BE15-1:KCCorporationissued300sharesof$10parvaluecommonstockfor$4,500.PrepareKCsjournalentry.,Cash4,500,Commonstock(300 x$10)3,000,Journalentry:,Additionalpaid-incapital1,500,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,No-ParStock,Reasonsforissuance:Avoidscontingentliability.Avoidsconfusionoverrecordingparvalueversusfairmarketvalue.,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,Somestatesrequirethatno-parstockhaveastatedvalue.,BE15-2:SwartenCorporationissued600sharesofno-parcommonstockfor$8,200.PrepareSwartensjournalentryif(a)thestockhasnostatedvalue,and(b)thestockhasastatedvalueof$2pershare.,Cash8,200,Commonstock8,200,Journalentry:,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,Cash8,200,Commonstock(600 x$2)1,200,Additionalpaid-incapital7,000,a.,b.,StockIssuedwithOtherSecurities,Twomethodsofallocatingproceeds:theproportionalmethodandtheincrementalmethod.,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,BE15-4:RavonetteCorporationissued300sharesof$10parvaluecommonstockand100sharesof$50parvaluepreferredstockforalumpsumof$13,500.Thecommonstockhasamarketvalueof$20pershare,andthepreferredstockhasamarketvalueof$90pershare.,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,ProportionalMethod,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,Cash13,500,Preferredstock(100 x$50)5,000,Journalentry(Proportional):,Additionalpaid-incapital-preferred3,100,Commonstock(300 x$10)3,000,Additionalpaid-incapital-common2,400,BE15-4:RavonetteCorporationissued300sharesof$10parvaluecommonstockand100sharesof$50parvaluepreferredstockforalumpsumof$13,500.Thecommonstockhasamarketvalueof$20pershare,andthepreferredstockhasamarketvalueof$90pershare.,BE15-4:(Variation)RavonetteCorporationissued300sharesof$10parvaluecommonstockand100sharesof$50parvaluepreferredstockforalumpsumof$13,500.Thecommonstockhasamarketvalueof$20pershare,andthevalueofthepreferredstockisunknown.,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,IncrementalMethod,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,Cash13,500,Preferredstock(100 x$50)5,000,Journalentry(Incremental):,Additionalpaid-incapital-preferred2,500,Commonstock(300 x$10)3,000,Additionalpaid-incapital-common3,000,BE15-4:(Variation)RavonetteCorporationissued300sharesof$10parvaluecommonstockand100sharesof$50parvaluepreferredstockforalumpsumof$13,500.Thecommonstockhasamarketvalueof$20pershare,andthevalueofthepreferredstockisunknown.,StockIssuedinNoncashTransactions,Thegeneralrule:Companiesshouldrecordstockissuedforservicesorpropertyotherthancashateitherthe:fairvalueofthestockissuedorfairvalueofthenoncashconsiderationreceived,whicheverismoreclearlydeterminable.,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,Land80,000,Commonstock(24,000 x$2)48,000,April1:Issued24,000sharesofcommonstockforland.Theaskingpriceofthelandwas$90,000;thefairmarketvalueofthelandwas$80,000.,Additionalpaid-incapital32,000,E15-2:KathyCrystalCorporationwasorganizedonJanuary1,2010.Itisauthorizedtoissue500,000sharesofnoparcommonstockwithastatedvalueof$2pershare.Preparethejournalentrytorecordthefollowing.,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,Organizationexpense50,000,Commonstock(10,000 x$2)20,000,Aug.1:Issued10,000sharesofcommonstocktoattorneysinpaymentoftheirbillof$50,000forservicesrenderedinhelpingthecompanyorganize.,Additionalpaid-incapital30,000,E15-2:KathyCrystalCorporationwasorganizedonJanuary1,2010.Itisauthorizedtoissue500,000sharesofnoparcommonstockwithastatedvalueof$2pershare.Preparethejournalentrytorecordthefollowing.,CostsofIssuingStock,Directcostsincurredtosellstock,suchasunderwritingcosts,accountingandlegalfees,printingcosts,andtaxes,shouldbereportedasareductionoftheamountspaidin(additionalpaid-incapital).,LO3Explaintheaccountingproceduresforissuingsharesofstock.,CorporateCapital,ReacquisitionofShares,LO4Describetheaccountingfortreasurystock.,Corporationspurchasetheiroutstandingstock:Toprovidetax-efficientdistributionsofexcesscashtoshareholders.Toincreaseearningspershareandreturnonequity.Toprovidestockforemployeestockcompensationcontractsortomeetpotentialmergerneeds.Tothwarttakeoverattemptsortoreducethenumberofstockholders.Tomakeamarketinthestock.,CorporateCapital,PurchaseofTreasuryStock,Twoacceptablemethods:Costmethod(morewidelyused).ParorStatedvaluemethod.Treasurystock,reducesstockholdersequity.,CorporateCapital,LO4Describetheaccountingfortreasurystock.,CorporateCapital,Illustration:PacificCompanyissued100,000sharesof$1parvaluecommonstockatapriceof$10pershare.Inaddition,ithasretainedearningsof$300,000.,LO4Describetheaccountingfortreasurystock.,Illustration15-4,CorporateCapital,Illustration:PacificCompanyissued100,000sharesof$1parvaluecommonstockatapriceof$10pershare.Inaddition,ithasretainedearningsof$300,000.OnJanuary20,2010,Pacificacquires10,000sharesofitsstockat$11pershare.,LO4Describetheaccountingfortreasurystock.,Treasurystock110,000,Cash110,000,CorporateCapital,Illustration:StockholdersequitysectionforPacificafterpurchaseofthetreasurystock.,LO4Describetheaccountingfortreasurystock.,Illustration15-5,SaleofTreasuryStock,AboveCostBelowCostBothincreasetotalassetsandstockholdersequity.,CorporateCapital,LO4Describetheaccountingfortreasurystock.,CorporateCapital,Cash15,000Treasurystock11,000Paid-incapitalfromtreasurystock4,000,Illustration:Pacificacquired10,000sharesofitstreasurystockat$11pershare.Itnowsells1,000sharesat$15pershareonMarch10.Pacificrecordstheentryasfollows.,LO4Describetheaccountingfortreasurystock.,CorporateCapital,Cash8,000Paid-incapitalfromtreasurystock3,000Treasurystock11,000,Illustration:IfPacificsellsanadditional1,000sharesoftreasurystockonMarch21at$8pershare,itrecordsthesaleasfollows.,LO4Describetheaccountingfortreasurystock.,CorporateCapital,Cash8,000Paid-incapitalfromtreasurystock1,000Retainedearnings2,000Treasurystock11,000,Illustration:AssumethatPacificsellsanadditional1,000sharesat$8pershareonApril10.,LO4Describetheaccountingfortreasurystock.,Illustration15-6,RetiringTreasuryStock,Thisdecisionresultsincancellationofthetreasurystockandareductioninthenumberofsharesofissuedstock.,CorporateCapital,LO4Describetheaccountingfortreasurystock.,Featuresoftenassociatedwithpreferredstock.Preferenceastodividends.Preferenceastoassetsinliquidation.Convertibleintocommonstock.Callableattheoptionofthecorporation.Nonvoting.,LO5Explaintheaccountingforandreportingofpreferredstock.,PreferredStock,CumulativeParticipatingConvertibleCallableRedeemable,LO5Explaintheaccountingforandreportingofpreferredstock.,PreferredStock,FeaturesofPreferredStock,Acorporationmayattachwhateverpreferencesorrestrictions,aslongasitdoesnotviolateitsstateincorporationlaw.,Accountingforpreferredstockatissuanceissimilartothatforcommonstock.,Cash120,000Preferredstock100,000Paid-incapitalinexcessofpar20,000,Illustration:BishopCo.issues10,000sharesof$10parvaluepreferredstockfor$12cashpershare.Bishoprecordstheissuanceasfollows:,LO5Explaintheaccountingforandreportingofpreferredstock.,PreferredStock,LO6Describethepoliciesusedindistributingdividends.,DividendPolicy,Dividenddistributionsgenerallyarebasedonaccumulatedprofits(retainedearnings).Fewcompaniespaydividendsinamountsequaltotheirlegallyavailableretainedearnings.Why?Maintainagreementswithcreditors.Meetstateincorporationrequirements.Tofinancegrowthorexpansion.Tosmoothoutdividendpayments.Tobuildupacushionagainstpossiblelosses.,Cashdividends.Propertydividends.,LO7Identifythevariousformsofdividenddistributions.,TypesofDividends,Dividendsrequireinformationconcerningthreedates:DateofdeclarationDateofrecordDateofpayment,Liquidatingdividends.Stockdividends.,CashDividendsBoardofdirectorsvoteonthedeclarationofcashdividends.Adeclaredcashdividendisaliability.Companiesdonotdeclareorpaycashdividendsontreasurystock.,LO7Identifythevariousformsofdividenddistributions.,TypesofDividends,Illustration:Whatwouldbethejournalentriesmadebyacorporationthatdeclareda$50,000cashdividendonMarch10,payableonApril6toshareholdersofrecordonMarch25?,March10(DeclarationDate),Retainedearnings,50,000,Dividendspayable,50,000,March25(DateofRecord),April6(PaymentDate),Dividendspayable,50,000,Cash,50,000,Debit,Credit,LO7Identifythevariousformsofdividenddistributions.,CashDividend,Noentry,PropertyDividendsDividendspayableinassetsotherthancash.Restateatfairvaluethepropertyitwilldistribute,recognizinganygainorloss.,LO7Identifythevariousformsofdividenddistributions.,TypesofDividends,Illustration:AdividendisdeclaredJan.5thandpaidJan.25th,inbondsheldasaninvestment;thebondshaveabookvalueof$100,000andafairmarketvalueof$135,000.,DateofDeclaration,Investmentinbonds,35,000,Gainoninvestment,35,000,and,DateofIssuance,Propertydividendpayable,135,000,Investmentinbonds,135,000,Debit,Credit,Retainedearnings,135,000,Propertydividendpayable,135,000,LO7Identifythevariousformsofdividenddistributions.,PropertyDividend,LiquidatingDividendsAnydividendnotbasedonearningsreducescorporatepaid-incapital.,LO7Identifythevariousformsofdividenddistributions.,TypesofDividends,June1(PaymentDate),April20(DeclarationDate),Retainedearnings,375,000,Additionalpaid-incapital,125,000,Debit,Credit,Dividendspayable,500,000,Dividendspayable,500,000,Cash,500,000,BE15-12:GravesMiningCompanydeclared,onApril20,adividendof$500,000payableonJune1.Ofthisamount,$125,000isareturnofcapital.PreparetheApril20andJune1entriesforGraves.,LO7Identifythevariousformsofdividenddistributions.,LiquidatingDividend,StockDividendsIssuanceofownstocktostockholdersonaproratabasis,withoutreceivinganyconsideration.Whenstockdividendislessthan2025percentofthecommonsharesoutstanding,companytransfersfairmarketvaluefromretainedearnings(smallstockdividend).,LO8Explaintheaccountingforsmallandlargestockdividends,andforstocksplits.,TypesofDividends,10%stockdividendisdeclared,Retainedearnings,20,000,Commonstockdividenddistributable,500,Debit,Credit,Additionalpaid-incapital,19,500,Stockissued,Commonstockdiv.distributable,500,Commonstock,500,Illustration:HHInc.has5,000sharesissuedandoutstanding.Thepershareparvalueis$1,bookvalue$32andmarketvalueis$40.,StockDividend,LO8Explaintheaccountingforsmallandlargestockdividends,andforstocksplits.,StockSplitToreducethemarketvalueofshares.Noentryrecordedforastocksplit.Decreaseparvalueandincreasednumberofshares.,TypesofDividends,LO8Explaintheaccountingforsmallandlargestockdividends,andforstocksplits.,2for1StockSplit,NoEntry-Disclosurethatparisnow$.50andsharesoutstandingare10,000.,StockDividend,Illustration:HHInc.has5,000sharesissuedandoutstanding.Thepershareparvalueis$1,bookvalue$32andmarketvalueis$40.,LO8Explaintheaccountingforsmallandlargestockdividends,andforstocksplits.,StockSplitandStockDividendDifferentiatedIfthestockdividendislarge,ithasthesameeffectonmarketpriceasastocksplit.Astockdividendofmorethan2025percentofthenumberofsharespreviouslyoutstandingiscalledalargestockdividend.Withalargestockdividend,transferfromretainedearningstocapitalstocktheparvalueofthestockissued.,TypesofDividends,LO8Explaintheaccountingforsmallandlargestockdividends,andforstocksplits.,Illustration:HHInc.has5,000sharesissuedandoutstanding.Thepershareparvalueis$1,bookvalue$32andmarketvalueis$40.,50%stockdividendisdeclared,Retainedearnings,2,500,Commonstockdividenddistributable,2,500,Debit,Credit,Stockissued,Commonstockdividenddistributable,2,500,Commonstock,2,500,StockDividend,LO8Explaintheaccountingforsmallandlargestockdividends,andforstocksplits.,LO9Indicatehowtopresentandanalyzestockholdersequity.,PresentationandAnalysisofStockholdersEquity,PresentationBalanceSheet,Illustration15-13,LO9Indicatehowtopresentandanalyzestockholdersequity.,PresentationandAnalysisofStockholdersEquity,PresentationStatementofStockholdersEquity,Illustration15-14,Ratioshowshowmanydollarsofnetincomethecompanyearnedforeachdollarinvestedbytheowners.,Analysis,NetincomePreferreddividends,Averagecommonstockholdersequity,RateofReturnonCommonStockEquity,=,PresentationandAnalysisofStockholdersEquity,LO9Indicatehowtopresentandanalyzestockholdersequity.,PresentationandAnalysisofStockholdersEquity,LO9Indicatehowtopresentandanalyzestockholdersequity.,Illustration:GerbersInc.hadnetincomeof$360,000,declaredandpaidpreferreddividendsof$54,000,andaveragecommonstockholdersequityof$2,550,000,Illustration15-15,Solutionsonnotespage,Itisimportanttosomeinvestorsthatthepayoutbesufficientlyhightoprovideagoodyieldonthestock.,Analysis,Cashdividends,PayoutRatio,=,PresentationandAnalysisofStockholdersEquity,LO9Indicatehowtopresentandanalyzestockholdersequity.,NetincomePreferreddividends,PresentationandAnalysisofStockholdersEquity,LO9Indicatehowtopresentandanalyzestockholdersequity.,Illustration:TroyCo.hascashdividendsof$100,000andnetincomeof$500,000,andnopreferredstockoutstanding.,Illustration15-16,Solutionsonnotespage,Theamounteachsharewouldreceiveifthecompanywereliquidatedonthebasisofamountsreportedonthebalancesheet.,Analysis,Commonstockholdersequity,BookValuePerShare,=,PresentationandAnalysisofStockholdersEquity,LO9Indicatehowtopresentandanalyzestockholdersequity.,Outstandingshares,PresentationandAnalysisofStockholdersEquity,LO9Indicatehowtopresentandanalyzestockholdersequity.,Illustration:ChenCorporationscommonstockholdersequityis$1,000,000andithas100,000sharesofcommonstockoutstanding.,Illustration15-17,Solutionsonnotespage,ManycountrieshavedifferentinvestorgroupsthantheUnitedStates.Forexample,inGermany,financialinstitutionslikebanksarenotonlythemajorcreditorsbutoftenarethelargeststockholdersaswell.TheaccountingfortreasurystockretirementsdiffersbetweeniGAAPandU.S.GAAP.AmajordifferencebetweeniGAAPandU.S.GAAPrelatestotheaccountRevaluationSurplus.RevaluationsurplusarisesunderiGAAPbecausecompaniesarepermittedtorevaluetheirproperty,plant,andequipmenttofairvalueundercertaincircumstances.,BothiGAAPandU.S.GAAPconsiderthestatementofstockholdersequityaprimaryfinancialstatement.However,underiGAAPacompanyhastheoptionofpreparingastatementofstockholdersequitysimilartoU.S.GAAPorpreparingastatementofrecognizedincomeandexpense(SoRIE).TheSoRIEreportstheitemsthatwerechargeddirectlytoequitysuchasrevaluationsurplusandthenaddsthenetincomefortheperiodtoarriveattotalrecognizedincomeandexpense.Inthissituation,additionalnotedisclosureisrequiredtoprovidereconciliationsofotherequityitems.,LO10Explainthedifferenttypesofpreferredstockdividendsandtheireffectonbookvaluepershare.,DividendPreferences,Illustration:Assumethatin2010,MasonCompanyistodistribute$50,000ascashdividends,itsoutstandingcommonstockhasaparvalueof$400,000,andits6percentpreferreds