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Financial and Managerial Accounting by Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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Chapter 11 Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

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Learning Objectives

After studying this chapter, you should be able to:

  1. Identify the major characteristics of a corporation.
  2. Record the issuance of common stock.
  3. Explain the accounting for treasury stock.
  4. Differentiate preferred stock from common stock.
  5. Prepare the entries for cash dividends and stock dividends.
  6. Identify the items reported in a retained earnings statement.
  7. Prepare and analyze a comprehensive stockholders' equity section.

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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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