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Learning Team D Reflection Week Four By Quinta Miller Sophia Powell-Cooper Elizabeth Trechel Instructor: Susan Marlo February 12, 2012 Objective One • Differentiate types of stocks issued by corporations Corporations issues different types of stocks to meet internal requirements and to satisfy public demand. According to wiki.fool.com, "...companies access the public markets to raise funds for expansion and debt repayment...each of the different types of stock represent a form of ownership." Common stock makes up the majority of stock issued. Common stock owners have ownership in the company and claim dividends. They also get one vote per share to elect board members. Common stock yields…show more content…
After the split, the number of shares 60*2=120 shares. The new price per share $10/2=$5." When a stock split or a stock dividend takes place the number of shares outstanding during the previous part of the year must retroactively restated to show the stock split or its dividends. Objective Three • Record treasury stock transactions “Treasury stock is a corporation stock that was issued and then reacquired by the issuing corporation” (Larson & Miller, 1993, p. 814). Most company uses the cost of method when they account for their treasury stocks. When using this method to record transactions, they would debit treasury stocks for the price paid to reacquire the shares. When the company sells the shares it credits treasury stocks for the same amount. Example: Jan. 1st Treasury stock 11,500 Cash 11,500.00 (to purchase 1000 shares of treasury stock at 11.50 per share) Treasury stock transactions are recorded, according to cliffnotes.com "....treasury stock is reported as a contra account after retained earnings in the stockholders equity section. This means the amount reported as treasury stock is subtracted from the other

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