Essay about Acc 291 Week 3 Team

606 Words Jan 6th, 2014 3 Pages
Week 3 Team Reflection
Nereyda Bravo, Kolton Wentworth, and Randolph Rodarte
ACC/291- Principles of Accounting
September 09, 2013
Stephen Wilson

Week 3 Team Reflection
The issuance of different stocks by corporations is a topic that we are getting a better understanding of through reading the text and studying the Wiley plus texts. Authorized stock is the amount of stock that a corporation is authorized to sell as indicated in its charter, and within that broad spectrum are many different kinds of stock that the corporation can chose to sell. Examples of those stocks are par-value stock and no-par value stock. A par value stock is capital stock that has been assigned a value per share in the corporate charter, and a no par value
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Class A shares are shares that have a higher or different voting right. These stocks are typically held for founders or family members who want to maintain control of the company. Class B shares are when there are more than one class of stock offered. They carry one vote typically.
The objectives for this week are new territory for us as students, the journal entries relating to stocks and dividends are becoming a little difficult to fully comprehend. We had a hard time comprehending the section “Accounting for Stock Investments” and the holdings and percentages information. The main difficulty understands how to record the gains or losses when investments are sold and whether to credit or debit the account. Paying more attention to our 401K or other investments and following the NY Stock Exchange may be a good place to start learning and relating the accounting process of stocks and investments.
There is also treasury stock which is a company’s own stock that they have issued, fully paid for, and reacquired from the outside holders. These treasury stocks are not retired and a company may want to purchase their stock back because the market has been undervaluing their business. There are many nuances that we are still getting used to and have yet to fully grasp but we are working hard to understand them to apply what we learned to the field of business finance that we are perusing. We as a team hope to gain

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