ACC 221 1st Edition Lecture 31Outline of Previous Lecture- Section 30: Equity Common Stocko Shareso Selling common stock with par value shareso Authorizing shareso Earnings/ shareOutline of Current Lecture - Section 31: Equity Cont. Common Stocko Authorizing shareso Earnings/ shareCurrent Lecture- Section 31: Equity Cont. Common Stocko Authorizing shares Doesn’t cost anything to authorize, can go back to state to get more- Larger shares you get, less often you have to go get more and do paperwork- Sell 10000 shares of stock in 2000 increments - When in shareholders hand, considered outstanding Treasury stock – company buying back their stock (excess money)- Not unissued, just brought back into company- Outstanding = total issued – bought back = 8000o Earnings/ share Net income / outstanding shares of stock Outstanding shares tells how to pay a dividend- Common stock (1 million) = 10000 issues- Treasury 2000 not given shares outstanding on any financial records Buy back 2000 shares- Dr. treasury stock 20000, Cr. Cash 20000 Treasury is a contra equity accountThese 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.- Normal balance in debits, - Appears on balance sheet as
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