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15 Cards in this Set
- Front
- Back
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Characteristics of corporations
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Limited liability, buy and sell shares, owns property, cash dividend
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At what amount would the stock and land be recorded in 'Land for stock'?
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Fair market value
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What accounts in Stockholder's Equity?
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Common stock, Paid In Capital, Retained Earnings, and subtract Treasury Stock
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What does a stock spilt do to par?
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Reduces par
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Figure cash dividend (with issued and reacquired shares)
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Issued (sold) - Reacquired (treasury stock) = Outstanding (dividend)
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Balance of Deficit in Retained Earnings will be a debit or credit?
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Credit
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Characteristics of partnerships
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Limited life, unlimited liability, co-ownership of partnership property, mutual agency(words the same as partner's)
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Advantages of partnership
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Easy & inexpensive to organize. Brings together more capital, managerial skills, and experience. Lower income taxes.
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Divide net income among partners
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Net income less than the total allowances. Remaining balance will be negative. Amount must be divided among the partners as it were a net loss.
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Admit partner by purchase of interest- effect on total accounts
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Will not effect total accounts, only name change.
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Admit partner by contribution of assets- effect on total accounts
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Will effect money into it.
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How is cash divided upon liquidation?
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Capital balances
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Realized gain/loss divided among partners by?
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Income sharing ratios
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Where are deferred income taxes reported?
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Long term or current liabilities
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Where are cumulative effects reported?
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Balance sheet
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