Chapter13 Investments
【Objectives】
In this chapter, you will learn the following conceptual objectives:
C1: Distinguish between debt and equity securities and between short-term and long-term investments
C2: Identify and describe the different classes of investments in securities C3: Describe how to report equity securities with controlling influence In this chapter, you will learn the following procedural objectives: P1: Account for trading securities P2: Account for held-to-maturity securities P3: Account for available-for-sale securities
P4: Account for equity securities with significant influence
【Contents】
A. Basics of Investments
1. Motivation for investments 2. Classification and reporting 3. Accounting basics for debt securities 4. Accounting basics for stock securities
B. Reporting of Noninfluential Investments
1. Trading securities
2. Held-to –maturity securities 3. Available-for-sale securities
C. Reporting of Influential Investments
1. Investment in securities with significant influence 2. Investment in securities with controlling influence 3. Accounting summary for investments in securities
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【Key points & Difficult points】
Key points：Identify and describe the different classes of investments in securities Account for different classes of investments in securities Difficult points：Account for influential investments
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Chapter 14 Accounting for Corporations
【Objectives】
In this chapter, you will learn the following conceptual objectives: C1: Identify characteristics of corporations and their organization C2: Describe the components of stockholders’ equity C3: Explain characteristics of common and preferred stock C4: Explain the items reported in retained earnings
In this chapter, you will learn the following procedural objectives: P1: Record the issuance of corporate stock P2: Record transactions involving cash dividends P3: Account for stock dividends and stock splits
P4: Distribute dividends between common stock and preferred stock P5: Record purchases and sales of treasury stock and the retirement of stock
【Contents】
A. Corporate Form of Organization
1. Characteristics of corporation 2. Stockholders of corporation 3. Basics of capital stock
B. Common Stock
1. Issuing par value stock
2. Issuing par value stock at a premium 3. Issuing par value stock at a discount 4. Issuing no-par value stock 5. Issuing stated value stock 6. Issuing stock fro noncash assets
C. Dividend
1. Cash dividend 2. Stock dividend
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3. Stock splits D. Preferred Stock 1. Issuance of preferred stock
2. Dividend preference and preferred stock 3. Convertible preferred stock 4. Callable preferred stock
5. Reasons for issuing preferred stock E. Treasury Stock 1. Purchasing treasury stock 2 Reissuing treasury stock 3. Retiring stock F. Reporting of Equity
1. Statement of retained earnings 2. Statement of stockholders’ equity
【Key points & Difficult points】
Key points：Describe the components of stockholders’ equity
Record the issuance of corporate stock，distribution of cash dividend and stock
dividend, stock splits, and purchases and sales of treasury stock and the retirement of stock of a corporation
Difficult points：Distinguish between the components of stockholders’ equity and equity of a partnership or sole trader.
Compare accounting treatment of a corporation and that of a partnership or a
sole trader
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