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Chapter 15 Outline

This document provides a checklist of key concepts and accounting entries to know for Chapter 15 on corporate capital. It covers common and preferred stock issuances, treasury stock transactions, dividends, stock splits, and presentation of stockholders' equity. Students should understand stockholders' equity line items, be able to record common stock and preferred stock transactions, and account for dividend policies and stock repurchases. They should also know some differences between GAAP and IFRS treatment of stockholders' equity.

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107 views2 pages

Chapter 15 Outline

This document provides a checklist of key concepts and accounting entries to know for Chapter 15 on corporate capital. It covers common and preferred stock issuances, treasury stock transactions, dividends, stock splits, and presentation of stockholders' equity. Students should understand stockholders' equity line items, be able to record common stock and preferred stock transactions, and account for dividend policies and stock repurchases. They should also know some differences between GAAP and IFRS treatment of stockholders' equity.

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amu_scribd
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Checklist of Stuff to Know for Chapter 15 Corporate Capital: Define the following terms: o Common stock o Preferred Stock

k o Retained Earnings o Contributed Capital o Stockholders Equity o Additional Paid-in Capital o Stated Value o Shares Authorized o Shares Issued o Shares Outstanding o Treasury Shares Be able to record the journal entries for the issuance of common stock (with or without a par value or stated value). Be able to account for stock issued with other securities under the: o Proportional Method o Incremental Method What is the rule for the amount that should be recorded for stock issued in noncash transactions? Be able to record the journal entry for such a transaction. How does a company account for the costs of issuing stock? Reacquisition of Shares: What are the reasons that a company may re-purchase their outstanding stock? Be able to use the cost method of handling treasury stock for the following transactions & know how treasury stock transaction effect the balance sheet: o Repurchase of shares o Sale of Treasury Stock Above Cost Below Cost o Retiring Treasury Shares Preferred Stock (See the Appendix for further information on preferred stock): What are the features generally associated with preferred stock? How are dividends expressed for preferred stock? Be able to define the following: o Cumulative preferred stock o Participating preferred stock o Convertible preferred stock o Callable preferred stock o Redeemable preferred stock Be able to account for the issuance of preferred stock.

Dividend Policy & Stock Splits: Know the accounting rules and entries for the following types of dividends: o Cash dividends o Liquidating Dividends o Property dividends o Stock dividends Small Large What is a stock split and how does it affect the par value and number of shares outstanding? Presentation and Analysis of Stockholders Equity: Know how equity transactions affect the balance sheet. Be able to look at the stockholders equity section of the balance sheet and understand each component. For example make sure you understand each line of the equity section in Illustration 15-13. Know that the Statement of Changes in Stockholders Equity shows the beginning balance, additions & deductions, and ending balance for each component of equity. See Illustration 15-14. IFRS: Be able to describe briefly the major similarities and differences between GAAP and IFRS in regard to stockholders equity. Appendix on Dividend Preferences: Be able to handle the accounting for dividends under the following dividend preferences: o Cumulative and noncumulative preferred stock o Participating and nonparticipating preferred sock

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