Shareholder 's Equity And Its Influence Within Accounting

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Stockholder’s Equity and Its Influence within Accounting
Jonathan Woods
Liberty University
ACCT 302-D02 Abstract
This paper will explore and discuss the topics that entail shareholder’s equity which results have been drawn from and conducted from several scholarly articles and offline resources. The paper will cover the definitions and specifications of paid-in capital, retained earnings, treasury stock, and the accumulated other comprehensive income which comprise what stockholder’s equity looks like within the accounting of a corporation, business, and or personal finances. Paid-in capital stock or contributed stock will be discussed under paid-in capital. Net earnings concerning dividends paid out or to use for financial activities
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To further define what this means, Paid-in Capital or contributed capital is according to Oxford University press, “In the USA, the section of stockholders’ equity on a company’s balance sheet, which shows the amount of stock issued, the premiums or discounts from selling the stock, stock received from donations, and the resale of treasury stock (Oxford University press, 2010).”When these types of investments happen within a corporation and/ or business, they are required by some state laws to report these issued stocks. They are calculated by the actual amount of stock received minus the par value of that stock that is credited to paid-in capital in the excess what is par value of that particular stock value. Depending on which states this occurs in, some require different ways of reporting this stock as part of the paid-in capital of the shareholder’s equity. Some require par value of common stock, while others will require corporations to report a stated value if par value is nonexistent. If this tends to be the case, then these states will require that the way that the stated value would replace anywhere where par would be accounted for in the reporting process of the
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