Chapter 15 - Stockholders’ equity. After completing this chapter you should be able to: Discuss the characteristics of the corporate form of organization, identify the key components of stockholders’ equity, explain the accounting procedures for issuing shares of stock, describe the accounting for treasury other contents. | Prepared by Coby Harmon University of California, Santa Barbara Intermediate Accounting Intermediate Accounting 14th Edition 15 Stockholders’ Equity Kieso, Weygandt, and Warfield Discuss the characteristics of the corporate form of organization. Identify the key components of stockholders’ equity. Explain the accounting procedures for issuing shares of stock. Describe the accounting for treasury stock. Explain the accounting for and reporting of preferred stock. Describe the policies used in distributing dividends. Identify the various forms of dividend distributions. Explain the accounting for small and large stock dividends, and for share splits. Indicate how to present and analyze stockholders’ equity. Learning Objectives Issuance of stock Reacquisition of shares The Corporate Form Equity Preferred Stock Dividend Policy Presentation and Analysis Corporate law Capital stock or share system Variety of ownership interests Features Accounting for and reporting preferred stock Financial condition and dividend distributions Types of dividends Stock split Disclosure of restrictions Presentation Analysis Stockholders’ Equity Three primary forms of business organization The Corporate Form of Organization Proprietorship Partnership Corporation LO 1 Discuss the characteristics of the corporate form of organization. Special characteristics of the corporate form: Influence of state corporate law. Use of capital stock or share system. Development of a variety of ownership interests. State Corporate Law The Corporate Form of Organization LO 1 Discuss the characteristics of the corporate form of organization. Corporation must submit articles of incorporation to the state in which incorporation is desired. General Motors - incorporated in Delaware. . Steel - incorporated in New Jersey. Accounting for stockholder’s equity follows the provisions of each states business incorporation act. Capital Stock or Share System The Corporate Form of Organization LO 1 Discuss the . | Prepared by Coby Harmon University of California, Santa Barbara Intermediate Accounting Intermediate Accounting 14th Edition 15 Stockholders’ Equity Kieso, Weygandt, and Warfield Discuss the characteristics of the corporate form of organization. Identify the key components of stockholders’ equity. Explain the accounting procedures for issuing shares of stock. Describe the accounting for treasury stock. Explain the accounting for and reporting of preferred stock. Describe the policies used in distributing dividends. Identify the various forms of dividend distributions. Explain the accounting for small and large stock dividends, and for share splits. Indicate how to present and analyze stockholders’ equity. Learning Objectives Issuance of stock Reacquisition of shares The Corporate Form Equity Preferred Stock Dividend Policy Presentation and Analysis Corporate law Capital stock or share system Variety of ownership interests Features Accounting for and reporting preferred stock Financial
