Post on 08-Feb-2016
description
transcript
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 11-1LESSON 11-1
Starting a Corporation
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2
LESSON 11-1
TERMS REVIEWTERMS REVIEW
Corporation – organization with legal rights of a person and that may be owned by many people
board of directors – group elected by stockholders to run the company
articles of incorporation – written application requesting permission to form a corporation
Charter – Approved articles of incorporation common stock – stock that does not give owners preference
to earnings but does give voting rights preferred stock – stock that does give owners preference to
earnings but no voting rights
page 322
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
3
LESSON 11-1
TERMS REVIEWTERMS REVIEW
stock certificate – paper that shows number of shares, issue date, certificate number, and name of stockholder
par value – value assigned to a share of stock and printed on the stock certificate
par-value stock – share of stock that has authorized value printed on it
no-par-value stock – share of stock that has no authorized value printed on the stock certificate
stated-value stock – no par value stock that is assigned a value by a corporation
organization costs – fees and other expenses of organizing a corporation
page 322
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
4
LESSON 11-1
33
1. Nature of business.
2. Types of stock authorized.
3. Initial directors.
ARTICLES OF INCORPORATIONARTICLES OF INCORPORATION page 315
11
22
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
5
LESSON 11-1
1. Names of incorporators.
2. Signatures of incorporators.
ARTICLES OF INCORPORATIONARTICLES OF INCORPORATION page 316
11
22
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
6
LESSON 11-1
STOCK CERTIFICATESSTOCK CERTIFICATES page 317
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
7
LESSON 11-1
1. Write the date.
2. Enter the account title.
3. Record the receipt numbers.
4. Write the credit amount.
5. Write the debit amount.
TRANSACTIONS INCURRED WHEN TRANSACTIONS INCURRED WHEN STARTING A CORPORATIONSTARTING A CORPORATION page 319
11 22 33 44 55
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
8
LESSON 11-1
ORGANIZATION COSTS OF A ORGANIZATION COSTS OF A CORPORATIONCORPORATION page 320
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 11-2LESSON 11-2
Stock Subscriptions and the Balance Sheet
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
10
LESSON 11-2
11
2233
4455 66
1. Write the date.
3. Record memorandum number.
4. Enter debit amount.
5. Enter the account credited.
6. Enter credit amount.
2. Enter the account debited.
JOURNALIZING A STOCK JOURNALIZING A STOCK SUBSCRIPTIONSUBSCRIPTION page 324
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
11
LESSON 11-2
1. List intangible assets as the last category of assets.2. List sources of paid-in capital.
BALANCE SHEET OF A NEWLY BALANCE SHEET OF A NEWLY FORMED CORPORATIONFORMED CORPORATION page 325
11
22
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
12
LESSON 11-2
JOURNALIZING CASH RECEIVED JOURNALIZING CASH RECEIVED FOR A STOCK SUBSCRIPTIONFOR A STOCK SUBSCRIPTION page 326
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
13
LESSON 11-2
JOURNALIZING ISSUANCE OF STOCK JOURNALIZING ISSUANCE OF STOCK PREVIOUSLY SUBSCRIBEDPREVIOUSLY SUBSCRIBED page 326
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
14
LESSON 11-2
TERMS REVIEWTERMS REVIEW
subscribing for capital stock intangible assets
page 327
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 11-3LESSON 11-3
Calculating and Journalizing Dividends for a Corporation
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
16
LESSON 11-3
TERMS REVIEWTERMS REVIEW
declaring a dividend – an action by the board of directors to pay stockholders a portion of its earnings
date of declaration – The date that the dividend payment is voted on and approved
date of record – The date that determines which stockholders are to received dividends – whoever holds the stock on that date gets the $
date of payment – Date in which dividends are actually to be paid
page 332
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
17
LESSON 11-3
Calculating Value of Preferred Stock
DIVIDENDSDIVIDENDS page 328
Number of Preferred Shares Par Value = Value of
Preferred Stock×
1,000 $100.00 = $100,000.00×
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
18
LESSON 11-3
DIVIDENDSDIVIDENDS page 328
Calculating Value of Common Stock
Number of Common Shares Stated Value = Value of
Common Stock×
16,000 $20.00 = $320,000.00×
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
19
LESSON 11-3
DIVIDENDSDIVIDENDS page 329
Calculating Dividend of Preferred Stock
=×Value of Preferred Stock
Preferred Dividend Rate
Preferred Dividend Amount
$100,000.00 8% = $8,000.00×
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
20
LESSON 11-3
DIVIDENDSDIVIDENDS page 329
Calculating Amount Available for Common Dividends
Total Amount Available for Dividends
Preferred Dividend Amount =
Amount Available for Common Dividends
–
$24,000.00 $8,000.00 = $16,000.00–
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
21
LESSON 11-3
DIVIDENDSDIVIDENDS page 329
Calculating Dividend Rate for Common Stock
Common Dividend Amount
Value of Common Stock = Common Dividend
Rate÷
$16,000.00 $320,000.00 = 5%÷
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
22
LESSON 11-3
JOURNALIZING DECLARATION OF JOURNALIZING DECLARATION OF DIVIDENDDIVIDEND page 330
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
23
LESSON 11-3
JOURNALIZING PAYMENT JOURNALIZING PAYMENT OF A DIVIDENDOF A DIVIDEND page 330