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Louisiana State University, Shreveport ACCT 701 CHAPTER LEARNING OBJECTIVES 1)Discuss the major characteristics of a corporation

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Louisiana State University, Shreveport

ACCT 701

CHAPTER LEARNING OBJECTIVES

1)Discuss the major characteristics of a corporation.

2. Explain how to account for the issuance of common and preferred stock, and the purchase of treasury stock.

Companies generally use the cost method in accounting for treasury stock. Under this approach, a company debits Treasury Stock at the price paid to reacquire the shares.

3. Explain how to account for cash dividends and describe the effect of stock dividends and stock splits.
4. Discuss how stockholders’ equity is reported and analyzed.

5. Prepare entries for stock dividends.