Corporations: Paid-in Capital, Retained Earnings, Dividends, and Treasury Stock
Read this chapter, which outlines the different sources of paid-in capital and how they are presented on the balance sheet. This chapter also covers treasury stock, dividends, stock splits, and price-per-share and price-per-earnings ratios.
After studying this chapter, you should be able to:
- Identify the different sources of paid-in capital and describe how to present them on a balance sheet.
- Account for a cash dividend, a stock dividend, a stock split, and a retained earnings appropriation.
- Account for the acquisition and reissuance of treasury stock.
- Describe the proper accounting treatment of discontinued operations, extraordinary items, and changes in accounting principle.
- Define prior period adjustments and show their proper presentation in the financial statements.
- Analyze and use the financial results – earnings per share and price-earnings ratio.
Source: Textbook Equity, https://learn.saylor.org/pluginfile.php/41464/mod_resource/content/19/AccountingPrinciples2.pdf
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