1. $ $ $ $ Section 3 Financial Reporting for a Publicly Held Corporation
Chapter 21 $
Section 3 Financial Reporting for a Publicly Held Corporation $
What You’ll Learn
How to prepare a statement of stockholders’ equity for a publicly held corporation.
How to prepare a balance sheet for a publicly held corporation. $ $

2. $ $ $ $ Why It’s Important Key Terms Chapter 21
Section 3 Financial Reporting for a Publicly Held Corporation (cont'd.)
Chapter 21 $
Why It’s Important
Stockholders and managers examine financial reports to determine the health of a corporation. $ $
Key Terms
statement of stockholders’ equity $

3. $ $ $ $ The Income Statement Chapter 21
Section 3 Financial Reporting for a Publicly Held Corporation (cont'd.)
Chapter 21 $
The Income Statement $
Similar to that prepared by a closely held corporation.
Federal corporate income taxes paid by a corporation are reported separately on the income statement. $ $

4. $ $ $ $ Statement of Stockholders’ Equity Chapter 21
Section 3 Financial Reporting for a Publicly Held Corporation (cont'd.)
Chapter 21 $
Statement of Stockholders’ Equity
Reports the changes in all of the stockholders’ equity accounts during the period.
Includes the number of shares of each type of stock issued and the total amount received for those shares, the net income for the period, and dividends declared during the period. $ $ $

5. $ $ $ $ Balance Sheet Chapter 21
Section 3 Financial Reporting for a Publicly Held Corporation (cont'd.)
Chapter 21 $
Balance Sheet
The stockholders’ equity section of a publicly held corporation’s balance sheet is more detailed than that of a closely held corporation.
Each type of stock issued is listed separately under the heading “Paid-in Capital.” $ $ $

6. $ $ $ $ Check Your Understanding Chapter 21
Section 3 Financial Reporting for a Publicly Held Corporation (cont'd.)
Chapter 21 $
Check Your Understanding $
What information is reported on the statement of stockholders’ equity? $ $