(BQ) Part 2 book "Financial & managerial accounting" has contents: Financial statement analysis; managerial accounting and cost concepts; the budgeting process, flexible budgets and performance analysis, capital investment analysis, quality management and measurement,.and other contents. | Find more at Chapter 13 Accounting for Corporations BUSINESS INSIGHT Vietecha, Inc. In 2014, a group of investors in Wisconsin formed a corporation called Vietecha, Inc. The corporation’s state charter authorized it to issue 2 million shares of $1 par value common stock and 50,000 shares of 4 percent, $20 par value cumulative and convertible preferred stock. Vietecha’s initial public offering (IPO) (., its first sale of stock to the public) occurred on February 1, 2014, when it issued 200,000 shares of common stock for $250,000 and, thereby, realized its first influx of contributed capital. During its first year of operations, Vietecha engaged in a number of other transactions involving common stock, as well as transactions involving preferred stock, treasury stock, and dividends. In this chapter, you will learn how to account for these transactions. You will also learn why corporations are the dominant form of business in the . economy and how a corporation’s owners—its stockholders—can evaluate the return on their investments. 1. Concept ▶ How does the separate entity concept apply to the stockholders in a corporation? 2. Accounting Application ▶ How should a corporation account for its stock transactions and dividends? LEARNING OBJECTIVES Define the corporate form of business and its characteristics. Identify the components of stockholders’ equity and their characteristics. Account for the issuance of stock for cash and other assets. Account for treasury stock. Account for cash dividends. Account for stock dividends and stock splits. Describe the statement of stockholders’ equity, and compute book value per share. Calculate dividend yield and return on equity, and define stock options. Dmitriy Shironosov/Alamy Limited 3. Business Application ▶ What measures should stockholders use to evaluate the return on their investments? Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, .
