par value
company must sell stock @ assigned value
paid in capital
total cash and other assets paid to Corp in exchange for stock
treasury stock
company buys back stock but continues to use it
outstanding stock
number of shares of issued stock being held by holders
preferred stock
- has dividend and assets during liquidation priority over common stock
- usually no voting
Shareholders benefits from owning stock
+voting; dividends
+preemptive right- keep same % of ownership
+residual claim of assets during liquidation
cumulative dividends
preferred stockholders get paid current and unpaid dividends before c.stock
Entry required on all dates except
record date
declaration date
- company authorizes cash dividends
- (Cash Dividends [D], Dividends payable [C])
record date
company determines ownership of outstanding shares
payment date
- company pays cash dividend to holders
- (Dividends payable [D], Cash [C])
stock dividend
company gives stock as dividend instead of cash
To issue cash dividends Corp must
- Retained earnings
- Adequate cash
- Declared dividends