Topic 12

A high-level overview of what Shareholder's Equity is, and what makes up Contributed Capital.

Authorized, Issued, Outstanding, and Treasury shares are all classifications of stock, and you'll need to know what each of them are.

When a company issues stock, part of the price of the stock has to go to par value, and the other part goes to and "additional" account called APIC.

Treasury stock is stock that the company has, for whatever reason, decided to repurchase. We account for treasury stock a little differently, in that there is no par value for it. We do, however, still have an APIC account. How's that work?

A company can pay a cash dividend to its shareholders, in which they distribute a certain amount of moeny per share. There are three distinct dates that you have to remember when it comes to cash dividends: Declaration, Date of Record, and Date of Payment.

Here we take a look at what effect declaring and paying cash dividends has on the Balance Sheet, and when those effects take place.

Stock dividends are basically a combination of cash dividends and stock issuance. There are two categories of stock dividends: small and large. The dividend amount is different depedning on whether it's a small or large dividend.