ACC 221 1st Edition Lecture 31 Outline of Previous Lecture Section 30 Equity Common Stock o Shares o Selling common stock with par value shares o Authorizing shares o Earnings share Outline of Current Lecture Section 31 Equity Cont Common Stock o Authorizing shares o Earnings share Current Lecture Section 31 Equity Cont Common Stock o 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 8000 o 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 account 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 Normal balance in debits Appears on balance sheet as negative
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