tailieunhanh - Lecture Accounting principles (8E): Chapter 13 - Coby Harmon

After completing this chapter you should be able to: Identify the major characteristics of a corporation, differentiate between paid-in capital and retained earnings, record the issuance of common stock, explain the accounting for treasury stock, differentiate preferred stock from common stock,.and other contents. | CHAPTER 13 CORPORATIONS: ORGANIZATION AND CAPITAL STOCK TRANSACTIONS Accounting Principles, Eighth Edition Identify the major characteristics of a corporation. Differentiate between paid-in capital and retained earnings. Record the issuance of common stock. Explain the accounting for treasury stock. Differentiate preferred stock from common stock. Prepare a stockholders’ equity section. Compute book value per share. Study Objectives 1. On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Forward-looking Information Soft Assets (a company’s know-how, market dominance, marketing setup, well-trained employees, and brand image). Timeliness (no real time financial information) Corporations: Organization and Capital Stock Transactions Issuing par value stock Issuing no-par stock Issuing stock for services or noncash assets The Corporate Form of Organization Accounting for Common Stock Issues Accounting for Treasury Stock Preferred Stock Statement Presentation and Analysis Characteristics Formation Stockholder rights Stock issue considerations Corporate capital Purchase of treasury stock Disposal of treasury stock Dividend preferences Liquidation preference Presentation Analysis—Book value per share Service Cost - Actuaries compute service cost as the present value of the new benefits earned by employees during the year. Future salary levels considered in calculation. Interest on Liability - Interest accrues each year on the PBO just as it does on any discounted debt. Actual Return on Plan Assets - Increase in pension funds from interest, dividends, and realized and unrealized changes in the fair market value of the plan assets. Amortization of Unrecognized Prior Service Cost - The cost of providing retroactive benefits is allocated to | CHAPTER 13 CORPORATIONS: ORGANIZATION AND CAPITAL STOCK TRANSACTIONS Accounting Principles, Eighth Edition Identify the major characteristics of a corporation. Differentiate between paid-in capital and retained earnings. Record the issuance of common stock. Explain the accounting for treasury stock. Differentiate preferred stock from common stock. Prepare a stockholders’ equity section. Compute book value per share. Study Objectives 1. On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Forward-looking Information Soft Assets (a company’s know-how, market dominance, marketing setup, well-trained employees, and brand image). Timeliness (no real time financial information) Corporations: Organization and Capital Stock Transactions Issuing par value .