会计专业英语 工业和信息化高职高专“十二五”规划教材立项项目 作者 孙晓媛 8.pptVIP

Accounting English Accounting English Lesson eight owner’s equity Lesson eight owner’s equity Words and phrases Lesson eight owner’s equity Shareholders’ rights 1. Vote in the election of board of directors at annual meeting. 2. Dividends. The right to receive a proportionate part of any dividend. 3. Liquidation. The right to receive a proportionate share of any assets remaining after the company pays its liabilities in liquidation. 4. Keep same percentage ownership when new shares of stock are issued. Lesson eight owner’s equity 8.1 Paid-up capital 8.1.1 Ordinary shares（common stock） Ordinary shares represents ownership in a corporation. A single share of stock is a piece of ownership of a corporation. common stock dividends may be paid in cash, stock or property. The most common payment method is a cash dividend. The board of directors determines whether or not to pay dividends to common shareholders. Increases or reductions most frequently depend on how well the company is performing. In a weak economy the company may even suspend dividends until its balance sheet improves.` Lesson eight owner’s equity Issuing ordinary shares Issuing no par value ordinary shares ABC company issues 3?000 no par value ordinary shares for $20 per share. The share issue entry is: Jan 14 Cash at bank (3?000?$20) 6?000 Paid-up ordinary capital 6?000 Issued no par value ordinary shares. Issuing par value ordinary shares Lesson eight owner’s equity Suppose ABC Company ordinary shares had a par value of $1. the entry for the issue of 5?000 shares for cash equal to their par value would be: Jan.8 Cash at bank (5?000?$1) 5?000 Paid-up ordinary capital 5?000 Issued ordinary shares at par Lesson eight owner’s equity Suppose ABC company issued 20?000 of its $1 par value ordinary shares for $5 per share-a total of $100?000(20?000?$5). The premium per share is $4($5-$1), and the entry to record