Equity in Class Exercises

These flashcards cover key concepts and definitions related to equity and stock issuance based on the lecture notes provided.

No-Par Common Stock

Stock that does not have a par value, as seen in the issuance by ABC Corporation for $25 per share.

Journal Entry

A record in the accounting books that reflects a transaction, detailing accounts affected and the amounts credited and debited.

Common and Preferred Stock at Par

Issuance of stock at its par value, shown in the transaction of XYZ Company with both common and preferred stocks.

Issuance at a Discount

Selling shares for less than their par value, demonstrated by LMN Inc. issuing $10 par common stock for $8.

Issuance at a Premium

Selling shares for more than their par value, illustrated by QRS Corporation selling $5 par stock for $12.

Stated Value Stock

Stock that has a stated value assigned by the corporation, like the $2 stated value stock issued by DEF Corporation.

Noncash Assets

Assets received by a company that are not cash, as shown by GHI Inc. exchanging stock for equipment.

Stock Dividends

Distribution of additional shares to shareholders, such as the 10% stock dividend declared by JKL Corporation.

Small Stock Dividend

A stock dividend that is less than 20-25% of the outstanding shares, like the 5% dividend by MNO Company.

Large Stock Dividend

A stock dividend that is more than 20-25% of the outstanding shares, represented by PQR Company's 30% dividend.

Treasury Stock

Stock that a company has repurchased from shareholders, demonstrated by STU Corporation repurchasing its own shares.