UA ACCT 200 - Stockholders Equity I (5 pages)

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Stockholders Equity I

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Stockholders Equity I


Lecture number:
Lecture Note
University of Arizona
Acct 200 - Introduction to Financial Accounting

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ACCT 200 1st Edition Lecture 20 Outline of Last Lecture I BE 9 9 II BE 9 10 III Installment Notes IV BE 9 17 V E 9 16 VI Selling Stocks Vs Bonds VII BE 9 18 Outline of Current Lecture I Public vs Private Corporations II Stockholders Rights III Advantages Disadvantages of a Corporation IV Types of Common Stock V BE 10 4 VI Preferred Stockholders VII BE 10 5 VIII Treasury Stock IX BE 10 8 X Retained Earnings XI Miscellaneous XII BE 10 10 XIII Stock Dividends XIV Stock Splits XV BE 10 12 Current Lecture private corporations can t become a shareholder just by contacting a broker like you can for public corporations right to receive dividends only if company declares them know corporations advantages and disadvantages Shareholders aren t affected if a corporation is sued Banks are less likely to lend to a sole proprietorship hardly ever know definitions of types of common stock Authorized shares 10 000 Issued shares 9000 Treasury shares 500 company bought its own shares back Outstanding shares 9000 500 8500 shares BE 10 4 issue 1000 shares of 1 par value stock for 20 per share Journal entry Cash 20 000 common stock 1000 par value shares issued additional paid in capital 19 000 total cash amt in common stock preferred stockholders give up their right to vote BE 10 5 issue 1000 shares of 01 preferred stock for 22 per share Cash 22 000 preferred stock 10 additional paid in capital 21 990 treasury stock contra negative equity account credit cash on test will have numbers without brackets have to find total equity by adding com stk additional paid in capital and retained earnings then subtracting treasury stock BE 10 8 company has 1000 shares issued to shareholders During the year company repurchases its own stock 100 shares at 28 Record transaction should know it s a treasury transaction Treasury stock cash 2800 2800 Effect on accounting equation Decreases asset cash decreases equity Treasury stock doesn t issue dividends accumulated deficit negative retained earnings

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