tailieunhanh - Simply Accounting phần 6

Khi các bảng cân đối chuẩn bị chính thức hơn, nó là tiêu chuẩn thực hành để hiển thị bên cạnh từng loại cổ phần bao nhiêu cổ phiếu được ủy quyền và được ban hành và nổi bật. Mục tạp chí trong tạp chí của công ty để ghi lại việc phát hành cổ phiếu trên là: | Corporations If National Construction was organized as National Construction Limited and Jim Brown and Mike Wood each bought 5 000 common shares for 20 per share and 14 000 preferred shares for 2 per share the equity sometimes called Stockholders Equity or Shareholders Equity for a corporation section of the balance sheet would look like this Equity Paid in Capital Common Shares 200 000 Preferred Shares 56 000 Total Paid in Capital 256 000 When balance sheets are more formally prepared it is standard practice to show beside each type of share how many shares were authorized and how many are issued and outstanding. The journal entry in the corporation s journal to record the issuance of the above shares is Feb 1 96 Cash in Bank Common Shares Preferred Shares Issued 10 000 common @ 20 and 28 000 preferred @ 2 1020 3800 3850 256 000 200 000 56 000 At the end of the year National Construction Limited like National Construction the proprietorship would transfer the balance of the Current Earnings account to the Previous Years Earnings account. For corporations this is called the Retained Earnings account because the earnings have been retained by the company rather than paid out to the shareholders as dividends. Even though the corporation has an account called Retained Earnings it may not be able to pay this amount out to its shareholders quickly because it may not have that much cash in the bank. It may have to convert some assets into cash by selling them or if they are receivables collecting them before it can distribute the retained earnings to its shareholders. 15-4 Simply Accounting Corporations Let s assume that National Construction Limited has 100 000 of retained earnings and pays a dividend of 1 per share to its preferred shareholders 28 000 shares on Jan. 31 1997. The journal entry to record this is Jan 30 97 Retained Earnings Cash in Bank Paid 1 dividend on 28 000 preferred shares 3900 1020 28 000 28 000 The Shareholders Equity section of the balance sheet