中南财经政法大学：《中级会计学 Intermediate Accounting》课程电子教案（PPT课件讲稿，英文版）Chapter 13 Contributed Capital

13 Contributed Capital ntermediate Accounting Accounting School. Zhongnan

13 Contributed Capital Accounting School ·Zhongnan University of Economics & Law ntermediate Accounting I 中级会计学

Intermediate Accounting 13 Contributed Ca 1。 ntroduction Types of corporations 1)Private Corporations (stock and nonatock 0 pen and cl匚 c universities Available for hospitals purchase churches the public

1. Introduction 1) Private Corporations (stock and nonstock; open and closed) 2) Public corporations 3) Domestic corporations 4) Foreign corporations universities, hospitals, churches Available for purchase by the public Intermediate Accounting 13 Contributed Capital Types of Corporations

Intermediate Accounting 13 Contributed Ca Changes in Equity Affecting Continued Assets or liabilities on next lide Comprehensive Transfers between Income Entity and Owners Other Investments Distributions Income Comprehensive by owners to owners Income Revenues Gains and Losses ano Included in net Expenses Income

Continued on next slide Changes in Equity Affecting Assets or Liabilities Transfers Between Entity and Owners Comprehensive Income Net Income Other Comprehensive Income Revenues and Expenses Gains and Losses Included in Net Income Investments by Owners Distributions to Owners Intermediate Accounting 13 Contributed Capital

Intermediate Accounting 13 Contributed Ca Continued Changes in Equity Not from ffecting Assets or previous Liabilities slide Stock Conversions of D ividends Preferred Stock and splits to common Stock

Continued from previous slide Changes in Equity Not Affecting Assets or Liabilities Stock Dividends and Splits Conversions of Preferred Stock to Common Stock Intermediate Accounting 13 Contributed Capital

2. Corporate Capital Structure Stockholders rights The right to share in the profits when a dividend is declared The right to elect directors and to establish corporate policies The right(called a preemptive right) to maintain a proportionate interest The right to share in the distribution of the assets of the corporation if it is liquidated

2. Corporate Capital Structure • The right to share in the profits when a dividend is declared. • The right to elect directors and to establish corporate policies. • The right (called a preemptive right) to maintain a proportionate interest. • The right to share in the distribution of the assets of the corporation if it is liquidated. Intermediate Accounting 13 Contributed Capital Stockholders’ Rights

Intermediate Accounting 13 Contributed Ca Basic terminology Subscribed capital Issued capital Al stock--The 1 number of shares Treasury stock-- n of capital stock he number of k that a corporation shares of capital th will issue upon the stock that a ion Its mi completion of an corporation has of installment ssued to its purchase contract ng stockholders and with an investor. I has reacquired but Dee not retired

Basic Terminology Authorized capital stock—The number of shares of capital stock that a corporation may issue as stated in its charter. Issued capital stock—The number of shares of capital stock that a corporation has issued to its stockholders as of a specific date. Outstanding capital stock—The number of shares of capital stock that a corporation has issued to its stockholders and that are still being held by them on a specific date. Treasury stock— The number of shares of capital stock that a corporation has issued to its stockholders and has reacquired but not retired. Subscribed capital stock—The number of shares of capital stock that a corporation will issue upon the completion of an installment purchase contract with an investor. Intermediate Accounting 13 Contributed Capital

Intermediate Accounting 13 Contributed Ca Basic terminology Issued Capital Stock Outstanding capital stock treasury stock Authorized Capital stock Unissued Capital Stock Subscribed capital stock

Authorized Capital Stock Issued Capital Stock * Outstanding capital stock * Treasury stock Unissued Capital Stock * Subscribed capital stock Intermediate Accounting 13 Contributed Capital Basic Terminology

Intermediate Accounting 13 Contributed Ca Legal capital Legal capital is the amount of stockholders'equity that the corporation cannot distribute to stockholders

Legal Capital Legal capital is the amount of stockholders’ equity that the corporation cannot distribute to stockholders. Intermediate Accounting 13 Contributed Capital

Intermediate Accounting 13 Contributed Ca 3. Issuance of Capital stock When only one class of stock is issued it is referred to as common stock

3. Issuance of Capital Stock When only one class of stock is issued, it is referred to as common stock. Intermediate Accounting 13 Contributed Capital

Intermediate Accounting 13 Contributed Ca Issuance of Capital stock A corporation issues 500 shares of its $10 par common stock for $18 Cash 9.000 Common Stock, $10 par 5.000 Additional Paid-in Capital on Common stock 4.000

Issuance of Capital Stock A corporation issues 500 shares of its $10 par common stock for $18. Cash 9,000 Common Stock, $10 par 5,000 Additional Paid-in Capital on Common Stock 4,000 Intermediate Accounting 13 Contributed Capital