ACCT 200 Outline of Last Lecture I Current Liabilities II Contingent Liabilities III Long Term Liabilities IV Equity Financing Outline of Current Lecture I Stock terms II Treasury stock III 3 terms for stocks IV Debt to Equity Ratio V Leverage Current Lecture I Stock terms a Preferred paid first b Common paid what is leftover after preferred are paid c Investment Assets when one company buys stock in another company d Contra Equity negative balance when a company buys its own stock a company never pays a dividend to itself e Par value minimum value a share can be issued at f Market price Par Value g Market Price par value additional paid in capital excess of par h Par owner s equity These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute i Market price cash received j Authorized all possible stock that is available k Issued shares actually sold l Outstanding shares still in the stockholders hands m Issuing stock is NOT revenue n Market price per share total cash received shares issued o Additional paid in capital market price per share par per share II Treasury stock a Shares repurchased by a corporation this is done so the company can provide shares as compensation to its employees b Issued Treasury Outstanding c Treasury stock is always recorded at the cost of what the company paid to reacquire it par does not matter for treasury stock III 3 terms for stocks a date of declaration incurs liability for dividend b date of record corporation lists stockholders who will get the dividend no accounting takes place here c corporation distributes dividends in cash decrease cash decrease dividends payable IV Debt to Equity Ratio a Debt to equity ratio total liabilities total equity V Leverage a Companies that are highly leveraged finance their operations using debt b Debt can be more risky because your assets can be repossessed by the bank c Higher leverage higher risk
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