F1M4 - Stockholders Equity

Above Par Stock Issuance

Dr. Cash Assets up

Cr. Common Stock Equity Up

Cr. APIC

At Par

Dr. Cash

Cr. Common Stock

Below Par

Dr. Cash

Dr. APIC

Cr. CS

Subscriptions JE 1

Dr. Subscription Receivable

Cr. Common Stock

Cr. APIC

Collection of Subscription JE

Dr. Cash

Cr. Subscriptions Receivable

Subscription Issuance JE

Dr. Common Stock Subscribed

Cr. Common Stock

Default Subscription JE Proportion

Dr. CS Subscribed

Cr. Regular CS

Subscribed Retain Partial PMT

Dr. CS. Subscribed

Cr. APIC

Stock Right JE and treatment

= Memorandum

Dr. Cash

Cr. CS

Cr. APIC

Stock Valuation

Stock @ FMV

Dr. Expense

Cr. CS (at Par)

Cr. APUC

Stages of Dividend

1. Declared

2. Record

3. PMT

Types of Divs

1. Scrip

2. Property

3. Liquidating

4. Stock

5. Cash

Property Dividends

= No Cash outflow, Use FMV

Dr. RE

Dr. Accumulated Depr.

Cr. PPE

Cr. Gain

Scrip Divs

= commit to pay divs @ Later, unspecified date

• no cash outflow

Dr. RE

Cr. NP

Liquidating Div

= Div in excess of RE

1. APIC

2. CS

Liquidating Div JE

Dr. RE

DR PIC

Dr CS or PS

Cr. Cash

Stock Div

= no div income to owner

• cost basis down, shares up

Small Stock Div

RE affected by FMV, less than 20%

Large Stock Div

RE affected by Par Value, morenthan 25%

Small Stock Div JE

Dr. RE

Cr. CS

Cr. APIC

Large Stock Div JE Declaration

Dr. RE

Cr. CS Distributable

Large Stock Div JE Distributin

Dr. CS Distributable

Cr. Capital Stock