约翰·J·怀尔德-会计学原理（英文版·第21版）IPPTChap013.pptVIP

Chapter 13Accounting for Corporations Privately HeldPublicly HeldOwnership can be Corporate Form of OrganizationExistence is separate from ownersAn entity created by lawHas rights and privilegesC 1 Characteristics of CorporationsAdvantagesSeparate legal entityLimited liability of stockholdersTransferable ownership rights Continuous lifeLack of mutual agency for stockholdersEase of capital accumulationDisadvantagesGovernmental regulationCorporate taxationC 1 Corporate Organization and ManagementC 1Corporate governance is the system by which companies are directed and controlled.Board of DirectorsStockholdersPresident, Vice President, and other OfficersEmployees of the Corporation Ultimate controlSelected by a vote of the stockholdersOverall responsibility for managing the companyCorporate Organization and ManagementC 1Stockholders usually meet once a year Rights of Stockholders Vote at stockholders’ meetings (or register proxy votes electronically) Sell stock Purchase additional shares of stock Receive dividends, if any Share equally in any assets remaining after creditors are paid in a liquidationC 1 Each unit of ownership is called a share of stock.A stock certificate serves as proof that a stockholder has purchased shares.Stock Certificates and TransferWhen the stock is sold, the stockholder signs a transfer endorsement on the back of the stock certificate.C 1 Basics of Capital StockTotal amount of stock that a corporation’s charter authorizes it to sell.Total amount of stock that has been issued or sold to stockholders.C 1 Par value is an arbitrary amount assigned to each share of stock when it is authorized.Market price is the amount that each share of stock will sell for in the market.?Basics of Capital StockClasses of Stock Par Value No-Par Value Stated ValueC 1 Par Value StockOn September 1, Matrix, Inc. issued 100,000 shares of $2 par value stock for $25 per share. Let’s record this transaction. Issuing Par Value StockP 1 Issuing Par Value StockP 1 Issui