Equity Cont.

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Equity Cont.


Lecture number:
31
Pages:
1
Type:
Lecture Note
School:
Miami University, Oxford
Course:
Acc 221 - Intro to Financial Accounting
Edition:
1
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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  Normal balance in debits,  Appears on balance sheet as negative ACC 221 1st Edition



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