【正文】 Hill Unissued Shares Treasury Shares Outstanding Shares Treasury shares are issued shares that have been reacquired by the corporation. Issued Shares Authorized Shares Treasury Stock ?The McGrawHill Companies, Inc., 1999 Slide 1137 Irwin/McGrawHill Treasury Stock No voting or dividend rights Contra equity account When stock is reacquired, the corporation records the treasury stock at cost. ?The McGrawHill Companies, Inc., 1999 Slide 1138 Irwin/McGrawHill On May 1, 1998 East Corp. reacquired 3,000 shares of its mon stock at $55 per share. Prepare the journal entry for May 1. Treasury Stock Example D a t e D e s c r i pt i on D e bi t C r e di t?The McGrawHill Companies, Inc., 1999 Slide 1139 Irwin/McGrawHill On May 1, 1998 East Corp. reacquired 3,000 shares of its mon stock at $55 per share. Prepare the journal entry for May 1. Treasury Stock Example D a t e D e s c r i pt i on D e bi t C r e di t1 M a y T r e a s u r y S to c k 1 6 5 , 0 0 0 C a s h 1 6 5 , 0 0 0 3 0 0 0 s ha r e s ? $ 5 5 = $ 1 6 5 , 0 0 0?The McGrawHill Companies, Inc., 1999 Slide 1140 Irwin/McGrawHill Treasury Stock Example On December 3, 1999 East Corp. reissued 1,000 shares of the stock at $75 per share. Prepare the journal entry for December 3. D a t e D e s c r i pt i on D e bi t C r e di t?The McGrawHill Companies, Inc., 1999 Slide 1141 Irwin/McGrawHill D a t e D e s c r i pt i on D e bi t C r e di t3 M a y C a s h 7 5 , 0 0 0 T r e a s u r y S to c k 5 5 , 0 0 0 A d d i ti o n a l P a i d i n C a p i ta l : T r e a s u r y S to c k T r a n s a c ti o n s 2 0 , 0 0 0 On December 3, 1999 East Corp. reissued 1,000 shares of the stock at $75 per share. Prepare the journal entry for December 3. 1,000 shares ?$75 = $75,000 1,000 shares ?$55 cost = $55,000 Treasury Stock Example ?The McGrawHill Companies, Inc., 1999 Slide 1142 Irwin/McGrawHill Stockholders?Equity Presentation S t oc k ho l de r s 39。 4 , 0 0 0 s ha r e s a ut hor i z e d, i s s ue d a nd out s t a ndi ng 2 0 0 , 0 0 0$ P r e f e r r e d s t oc k , 9 % , $ 1 0 0 pa r v a l ue 。?The McGrawHill Companies, Inc., 1999 Slide 111 Irwin/McGrawHill Chapter 11 Stockholders?Equity: Paidin Capital ?The McGrawHill Companies, Inc., 1999 Slide 112 Irwin/McGrawHill Corporations Existence is separate from owners. An entity created by law. Has rights and privileges. Privately, or Closely, Held Publicly Held Ownership can be ?The McGrawHill Companies, Inc., 1999 Slide 113 Irwin/McGrawHill Why Businesses Incorporate Stockholders have no personal liability. Privately, or Closely Held Publicly Held Transferability of ownership. Professional management. Continuity of existence. ?The McGrawHill Companies, Inc., 1999 Slide 114 Irwin/McGrawHill ? Disclose financial information. ? Financial statements prepared in accordance with GAAP. ? CPAs must audit the financial statements. ? Must ply with federal securities laws. ? Must submit financial information for SEC review. Publicly Owned Corporations face Different Rules ?The McGrawHill Companies, Inc., 1999 Sli