Presentation is loading. Please wait.

Presentation is loading. Please wait.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12-1 Capital Stock Transactions.

Similar presentations


Presentation on theme: "CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12-1 Capital Stock Transactions."— Presentation transcript:

1 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12-1 Capital Stock Transactions

2 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 12-1 Number of Shares Par Value per Share = Total Par Value × 1.Calculate the amounts to be recorded. 2.Write the date. 6.Record the credit amount. 5.Write the debit amount. 3.Enter the account title. 4.Record the receipt number. ISSUING PREFERRED STOCK AT PAR VALUE page 343 1 2345 800$100.00=$80,000.00 ×6

3 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 12-1 Number of Shares Value per Share =Value × 4.Record the receipt number. ISSUING PREFERRED STOCK FOR MORE THAN PAR VALUE page 344 1.Calculate the amounts to be recorded. 2.Write the date. 6.Record the credit amounts. 5.Write the debit amount. 3.Enter the account titles. 1 2 3 45 6 300$120.00=$36,000.00 × Total received300100.00= 30,000.00 × Par value $ 6,000.00Amount received in excess of par value

4 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 12-1 Number of Shares Value per Share =Value × 4.Record the receipt number.1.Calculate the amounts to be recorded. 2.Write the date. 6.Record the credit amount. 5.Write the debit amounts. 3.Enter the account titles. 1 2 3 4 6 page 345 500$100.00=$50,000.00 × Par value50090.00= 45,000.00 × Total received $ 5,000.00Total discount 5 ISSUING PREFERRED STOCK FOR LESS THAN PAR VALUE

5 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 12-1 ISSUING PREFERRED STOCK FOR ASSETS OTHER THAN CASH page 346 Number of Shares Value per Share =Value × 4.Record memorandum number.1.Calculate the amounts to record. 2.Write the date. 6.Record the credit amount. 5.Write the debit amount. 3.Enter the account titles. 1 2 3 4 6 100$120.00=$12,000.00 × Total received100100.00= 10,000.00 × Par value $ 2,000.00Amount received in excess of par value5

6 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 12-1 ISSUING COMMON STOCK WITH NO PAR VALUE page 347

7 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 12-1 ISSUING COMMON STOCK WITH A STATED VALUE page 347

8 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 12-1 TERM REVIEW discount on capital stock page 348

9 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12-2 Treasury Stock Transactions

10 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 10 LESSON 12-2 2.Enter the account title. 3.Record the check number. 1.Write the date. 5.Record the credit amount. 4.Write the debit amount. BUYING TREASURY STOCK page 350 12345

11 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 12-2 54 SELLING TREASURY STOCK FOR ORIGINAL COST page 351 2.Enter the account title. 3.Record the receipt number. 1.Write the date. 5.Record the credit amount. 4.Write the debit amount. 123

12 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 12 LESSON 12-2 Number of Shares Value per Share =Value × 4.Record the receipt number. SELLING TREASURY STOCK FOR MORE THAN ORIGINAL COST page 352 1.Calculate the amounts to be recorded. 2.Write the date. 6.Record the credit amounts. 5.Write the debit amount. 3.Enter the account titles. 1 2 3 45 6 200$15.00=$3,000.00 × Total received20012.00= 2,400.00 × Original cost $ 600.00Amount received in excess of original cost

13 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 13 LESSON 12-2 Number of Shares Value per Share =Value × 4.Record the receipt number.1.Calculate the amounts to be recorded. 2.Write the date. 6.Record the credit amount. 5.Write the debit amount. 3.Enter the account title. 1 2 3 4 6 page 353 50$12.00=$600.00 × Original cost5010.00= 500.00 × Total received $100.00Amount received less than original cost 5 SELLING TREASURY STOCK FOR LESS THAN ORIGINAL COST

14 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 14 LESSON 12-2 TERM REVIEW treasury stock page 354

15 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12-3 Bonds Payable Transactions

16 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 16 LESSON 12-3 ISSUING BONDS page 356 1.Record the issuance of the bonds. 1

17 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 17 LESSON 12-3 Balance Owed on Bond Issue Bond Interest Rate = Annual Interest × $250,000.0012%=$30,000.00 × 2.Record the payment of the interest. 1.Calculate the annual interest. PAYING INTEREST ON BONDS page 356 1 2

18 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 18 LESSON 12-3 1.Record the initial payment to the bond sinking fund. DEPOSITING CASH IN A BOND SINKING FUND page 357 1

19 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 19 LESSON 12-3 Amount of Increase in Sinking Fund Interest Earned During Year = Amount to be Deposited – $50,000.00$2,000.00=$48,000.00 – 2.Record the payment to the bond sinking fund. 1.Calculate the amount to be deposited in the fund. DEPOSITING CASH TO SINKING FUND AND RECORDING INCOME EARNED page 357 1 2

20 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 20 LESSON 12-3 July 1, 20X4. Received notice from bond trustee that bond issue was retired using bond sinking fund, $250,000.00. Memorandum No. 600. Bonds Payable Retired250,000.00Balance250,000.00 (New Bal. zero) Bonds Sinking Fund Balance250,000.00 (New Bal. zero) Retired250,000.00 RETIRING A BOND ISSUE page 358

21 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 21 LESSON 12-3 TERMS REVIEW bond bond issue trustee bond sinking fund retiring a bond issue term bonds serial bonds page 360


Download ppt "CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12-1 Capital Stock Transactions."

Similar presentations


Ads by Google