DOC PREVIEW
GSU ACCT 2102 - 2102Ch19

This preview shows page 1-2-3-4-5 out of 15 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 15 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 15 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 15 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 15 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 15 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 15 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

1Principles of Accounting IIChapter 19: Record and CommunicateEquity FinancingTime to ReviewWhy does a business need ______________?What are the three sources of ________________?What are the major forms of __________________?To raise large amounts of ______________, what business form is generally preferred?Unlike proprietorships and partnerships, ____________ accounts for each owner are notshown on a corporation’s ______________ _____________? Why not?What are the major advantages of partnerships over ___________________?What are the major disadvantages?Which business form has _______________ life?In which business form is it easiest to ________________ ownership?How are _______________ divided among the partners in a partnership?Common techniques for dividing a partnership’s _________________ among partnersare:What type of financing instrument has the last claim on assets in _________________?What type of financing may have ___________________ rights?2How does one calculate the dividends on __________________ preferred stock?If the number of issued, outstanding, and authorized shares are different, which is____________________?Which is _________________?What do differences between outstanding and _________________ shares indicate?Why might a company have __________________ stock?What is _____________ capital, how is it computed, and why is it necessary?What is ____________ value, and what causes it to fluctuate?The amount shares sell for is their ___________ ____________ .What are the dates on which a corporation establishes an obligation to pay__________________ and satisfies that obligation?The ___________________ date is between what other two dates?Dividends are paid only on ______________________ shares.Do cash dividends, stock dividends, and stock splits reduce a corporation’s__________________?3Sole Proprietorship• ______________ owner• Not a separate legal ____________• __________________ liability• _____________ section consists entirely of “owner’s capital”• Owner’s Capital = ______________ - _________________ + ________________ - ______ _____________Calculate owner’s capital at the end of years 2 and 3:Contributed, year 1 $10,000Earnings, year 1 1,800Withdrawal, year 2 1,000Loss, year 2 4,300Earnings , year 3 6,000Withdrawal, year 3 2,000Three Minute Writing AssignmentWhy aren’t _______________ separated from the owner’s __________________ in asole proprietorship?4Recording Owner’s Contributions• Example journal entry:• Non-cash assets are recorded at their ________ ______________ __________.You Record ItCharlie has a dry cleaning business.He bought a computer two years ago for $_________; it is worth $_________ now.He also has 12 bottles of dry cleaning fluid worth $______. He purchased the bottles oneBay for $_______ last winter.He bought a new commercial iron for $__________ last week.If Charlie contributes the computer, the dry cleaning fluid, and the iron to the business,what is the journal entry to record the transaction?Closing Entries at Year End• When the period is over, the ____________ and ______________ accounts are“closed out” to _______________ _________________ (a ________________account), and income summary is closed to owner’s ___________________.Revenue 14,000Income summary 14,000Income summary 8,000Expenses 8,000___________ ____________ _________________ ___________ _______5Partnerships• _________ or __________ owners• Not separate ___________ entity• ______________ liability• ____________ agency• Separate ________ __________Partners’ Capital Accounts• Increase for _________________• Decrease for _________________• Increase for partner’s share of _______ _______________• Decrease for partner’s share of _______ _____________• Increase if _______ partner pays ______the capital account balance assigned• Decrease if _______ partner pays ______the capital account balance assigned6Balance Sheet for Partnerships• _______________ account for each partner• No ____________ ______________ account• No ____________ ____________ accountsRecording Equity TransactionsJane Jack John RandyBeginning capital $50,000 $60,000 $100,000 $5,000Contributions 5,000 5,000 5,000Withdrawals 20,000 20,000 20,000Salary allowanceResidual earningsEnding capitalThe partnership earned $_____________ and has agreed to give Randy a $__________salary allowance. Remaining income is allocated based on beginning capital accounts.Make the journal entries for the year’s contributions, withdrawals, and profit. Determineending balances.Journal entry for contributions:Journal entry for withdrawals:Journal entry for earnings allocation:7Admitting a New PartnerJane Jack John Randy ViBeginning capital $32,500 $48,750 $113,750 $130,000Capital percentage 10% 15% 35% 40%Bonus allocationVi wants to join the partnership, and the 4 existing partners agree to admit her. Vi willcontribute $_____________ and receive _______% of the partnership.Post-contribution partnership capital:Vi’s initial capital account balance:Bonus:Journal entry to admit Vi:8Let’s Change the FactsJane Jack John Randy ViBeginning capital $32,500 $48,750 $113,750 $130,000Capital percentage 10% 15% 35% 40%Bonus allocationVi wants to join the partnership, and the 4 existing partners agree to admit her. Vi willcontribute $_____________ and receive _______% of the partnership.Post-contribution partnership capital:Vi’s initial capital account balance:Bonus:Journal entry to admit Vi:Characteristics of Corporations• _______________ legal entity• _______________ liability• ________________ taxation• Shares evidence __________________9Corporation’s Equity Section• Contributionso o • _________________ capital• Retained ________________• __________________ stockMeaning of Par Value• Some states require a ___________ _______________ capital to protect______________________.• Set very ______________• No real _______________ use• Not a measure of _____________ _____________10Stock Issue Issues• Par value is recorded in the _____________ or ____________ _____________account.• The rest is recorded as “___________ ____________ in ___________ of______.”• With ___________ stock, the full proceeds are recorded in the common orpreferred stock account.Recording Stock IssuesHow many shares were issued in each of the independent cases below?Cash 15,000Common stock ($______ par) 5,000Paid-in


View Full Document

GSU ACCT 2102 - 2102Ch19

Download 2102Ch19
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view 2102Ch19 and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view 2102Ch19 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?