第12章499-516页.pdf

66124_c12_481-516.qxd 11/11/03 6:07 PM Page 499 Chapter 12 • Corporations: Organization, Capital Stock Transactions, and Dividends 499 Key Points K 1Describe the nature of the cor- a corporation issues stock at more ner. When a stock dividend is de- porate form of organization. than par, Paid-In Capital in Excess clared, Stock Dividends is debited for Corporations have a separate legal of Par is credited for the difference the fair value of the stock to be is- existence, transferable units of stock, between the cash received and the sued. Stock Dividends Distributable and limited stockholders’ liability. par value of the stock. When stock is credited for the par or stated value Corporations may be either public or is issued in exchange for assets other of the common stock to be issued. private corporations, and they are than cash, the assets acquired The difference between the fair value subject to federal income taxes. should be recorded at their fair mar- of the stock and its par or stated The documents included in form- ket value. value is credited to Paid-In Capital ing a corporation include an appli- When no-par stock is issued, the in Excess of Par—Common Stock. cation of incorporation, articles of entire proceeds are credited to the When the stock is issued on the date incorporation, and bylaws. Costs of- stock account