ACCT 200 1st Edition Lecture 21 Outline of Last 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 Outline of Current Lecture I Journal Entry for Stock Dividends II Balance Sheet for Stockholder s Equity III E 10 12 IV Return on Equity V BE 10 15 VI Earnings Per Share VII Exam 3 Information Current Lecture journal entry for stock dividends Dr dividends Cr common stock equity section on balance sheet shows ending balance as of the date of the balance sheet Statement of stockholder s equity starts with beginning balance and shows the activity for the year and get to the ending balance E 10 12 transaction how does it change my assets liabilities and equity Issue common stock cash increase asset equity increase Issue preferred stock cash increase asset equity increase Purchase treasury stock cash decrease equity decrease Declare a cash dividend increase dividends payable liability decrease retained earnings equity Pay cash dividend decrease cash decrease dividends payable Stock dividend no change in the end retained earnings decreased and common stock increased return on equity net income average stockholders equity BE 10 15 9043 sales 220 net income 2219 Beginning equity 1874 Ending equity Average equity 2219 1874 2 2046 5 220 2046 5 return on equity 1075 10 75 return on equity VERY important Earnings per share net income average shares outstanding Tells how much you earned per share of common stock Good to use with next ratio price earnings ratio
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