Chapter 4 Financial Accounting Frameworks (Statement of Stockholders' Equity)

Statement of Stockholders' Equity (Template Structure)

Reconciles the activity from Beginning Balances to Ending Balances across Totals, Retained Earnings, AOCI, Common Stock, and APIC

Net Income (Impact on Equity)

Increases Retained Earnings (and Total Equity)

Other Comprehensive Income (Impact on Equity)

Increases or decreases Accumulated Other Comprehensive Income (AOCI) (and Total Equity)

Dividends (Impact on Equity)

Decreases Retained Earnings (and Total Equity)

Issue Common Stock (Impact on Equity)

Increases Common Stock (at par value), increases APIC (excess over par), and increases Total Equity

Beginning Balances (Stockholders' Equity)

Starting balance sheet amounts brought forward from the end of the preceding fiscal period

Ending Balances (Stockholders' Equity)

Beginning Balance + Net Income + OCI - Dividends + Common Stock Issuances (reported on the balance sheet)

Retained Earnings Ending Balance Formula

Beginning Retained Earnings + Net Income - Dividends

AOCI Ending Balance Formula

Beginning AOCI + Other Comprehensive Income (OCI)

Common Stock (Balance Sheet Presentation)

Shares issued measured at par or stated value

APIC (Balance Sheet Presentation)

Additional Paid-In Capital; capital contributed by shareholders above par value

AOCI (Balance Sheet Presentation)

Accumulated Other Comprehensive Income; cumulative unrecognized gains and losses

RE (Balance Sheet Presentation)

Retained Earnings; cumulative earnings retained in the business after dividend distributions

Total Shareholders' Equity (Balance Sheet Tie-Out)

Sum of ending balances: Common Stock + APIC + AOCI + RE