Chapter 11 Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings
Learning Objectives
After studying this chapter, you should be able to:
- Identify the major characteristics of a corporation.
- Record the issuance of common stock.
- Explain the accounting for treasury stock.
- Differentiate preferred stock from common stock.
- Prepare the entries for cash dividends and stock dividends.
- Identify the items reported in a retained earnings statement.
- Prepare and analyze a comprehensive stockholders' equity section.
Feature Story
What's Cooking?
What major U.S. corporation got its start 41 years ago with a waffle iron? Hint: It doesn't sell food. Another hint: Swoosh. Another hint: “Just do it.” That's right, Nike. In 1971, Nike co-founder Bill Bowerman put a piece of rubber into a kitchen waffle iron, and the trademark waffle sole was born. It seems fair to say that at Nike, “They don't make 'em like they used to.“
Nike was co-founded by Bowerman and Phil Knight, a member of Bowerman's University of Oregon track team. Each began in the shoe business independently during the early 1960s. Bowerman got his start by making hand-crafted running shoes for his University ...
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