ch 10
preferred stock
1. has preference as to dividends 2. is useful for raising capital without reducing common stockholder's control 3. generally does not have voting rights
two types of corporations
1. public 2. private
total number of shared available to sell as indicated in the company's articles of incorporation
authorized shares
stock records are finalized to determine which stockholders are to receive payment
date of record
dividends payable is recorded as a credit on the
declaration date
the board of directors officially approves a dividend
declaration date
distribution of assets to shareholders
dividend
declaring a dividend that will be paid at a later date has what affect on the accounting equation
increase in liabilities decrease in stockholder's equity
total number of shares of stock issues or sold to investors
issues shares
an accumulated deficit in retained earnings indicates that the company had
net losses
dividends payable is increased
on the declaration date
the number of shares issued less treasury shares repurchased by the corporation
outstanding shares
a business that is co-owned by two or more persons, whose investors have unlimited liability
partnership
dividends payable is decreased
payment date
-all of the company's earnings kept rather than distributed to stockholders -decreased by dividends -sometimes called earned capital -increased by net income
retained earnings
corporations accumulated income that has not been distributed as dividends to shareholders
retained earnings
a corporation is owned by its
shareholders
amounts invested by shareholders amounts earned by the corporation
shareholders eqiuty
number of shares issues minus the number of shares in treasury
shares outstanding
retained earnings paid in capital
sources of shareholders equity
cause par value per share to change
stock splits
cause total stockholder's equity to remain the same
stock splits and stock dividends
2-for-1 stock split increased the marketability of the stock because
the market price per share decreases
shares of stock that are repurchased
treasury stock
dividends declared is closed into ______ _________ at the end of the fiscal year
retained earnings
ownership interests of the investors in a corporation are referred to as
shareholder's equty
limited to the amount of the investment
shareholder's liability
distribution of additional shares of a corporations stock to current shareholders of the corporation
stock dividend
require a journal entry
stock dividends