Kế toán, kiểm toán - Corporations: Paid - In capital

Corporations: Paid-in CapitalCorporationA group of persons authorized to act as a separate legal entitySame privileges and responsibilities as an individualEnter into contractsSue or be suedOwn, buy, and sell propertyOrganization of a CorporationStockholdersBoard of DirectorsManagementStockholders’ RightVote at stockholder’s meetingsSell or dispose of shares of stockParticipate in corporate profits by receiving dividends when declaredMaintain one’s percentage ownership (preemptive right)Participate in distribution of assets on liquidationAdvantages of IncorporationAbility to generate capital investmentEase of transfer of ownershipContinuity of lifeLimited liabilityProfessional managementDisadvantages of IncorporationCost of incorporationIncreased regulationDouble taxationSeparation of ownership and management functionsOverview of Stockholders’ EquityPaid-in capitalStock - parExcess over par or stated valueDonationsRetained earningsUndistributed earnings from operationsStock TerminologyAuthorizedMaximum number of shares allowed by charterIssuedNumber of shares transferred to stockholdersOutstandingNumber of shares currently in hands of stockholdersStock TerminologyPar valueDollar amount assigned to each share of stock by charterStated valueDollar amount assigned to each share of stock by board of directorsNo-par valueStock without a par valueLegal CapitalMinimum amount of capital that must be left in the corporation by actions of the board of directors for protection of the creditorsPar-value - par value of issued sharesStated value - stated value of issued sharesNo-par - total proceeds of stockClasses of StockCommon stock Residual class of ownershipControlling ownersUnlimited dividendsPreferred stockReceive dividends before commonReceive liquidation before commonPreferred StockStated dividend ratePercentage of parDollar amount per shareCumulativeUndeclared dividends accumulateUnpaid dividends are dividends in arrearsIssuance of StockSecurities Act of 1933 requires stock issued in interstate markets to be registered with the SECAnnounced in tombstone adAdvertising restricted to a book of facts called prospectusIssuance of StockProceeds increase assetsPar or stated value increases stock accountProceeds in addition to par or stated value recorded in Paid-in Capital-Excess Over Par(Stated) Value, class of stockDisclosure of Paid-in CapitalStock Preferred stock, 10%, $10 par, 1,000 shares authorized, 800 shares issued $ 8,000 Common stock, $1 par, 10,000 shares authorized, 6,000 shares issued 6,000 Total stock $14,000Disclosure of Paid-in CapitalAdditional paid-in capital Paid-in capital-excess over par, preferred $20,000 Paid-in capital-excess over par, common 50,000 Paid-in capital-donated land 14,000 Total additional paid-in capital $84,000 Total paid-in capital $98,000Analyzing InformationTotal number of shares authorizedTotal number of shares issuedTotal number of shares outstandingTotal market value of shares outstanding