Accounting Notes
Corporate Income Statement, Stock Dividends, Treasury Stock
Income Statement format:
Multi-Step
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from continuing operations before income tax . . . . . . . . . . .
Income Tax Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . .
Discontinued Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before extraordinary items and cumulative effect
of change in accounting methods . . . . . . . . . . . . . . . . . . . . . . . . . .
Extraordinary Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cumulative effect of change in accounting methods . . . . . . . . . . . . .
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Earnings per share of common stock
Income from continuing operations ($ amount / shares) . . . . . . . . .
Income from discontinued operations ($ amount / shares) . . . . . . .
Income before extraordinary items and cumulative effect
of change in accounting methods ($ amount / shares) . . . . . . . . .
Extraordinary Item ($ amount / shares) . . . . . . . . . . . . . . . . . . . . . .
Cumulative effect of change in accounting methods . . . . . . . . . . . .
Net Income ($ amount / shares) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
$xxx,xxx
$x.xx
x.xx
x.xx
x.xx
x.xx
$x.xx
Earning Per Share:
EPS = (Net Income - Preferred Dividends)/Weighted Average number of common shares
outstanding
Weighted Average number of Common Shares Outstanding:
Number of
Common Shares
Outstanding
X
Fraction
of
Year
=
Weighted Average
Number of Common
Shares Outstanding
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Student Learning Assistance Center, San Antonio College, 2004
Accounting Notes
Corporate Income Statement, Stock Dividends, Treasury Stock
Income Statement format:
Single Step
Revenues and Gains:
Sales Revenue .....................................................
Gains ...................................................................
Total revenues and gains ..............................
Expenses and Losses:
Cost of goods sold ...............................................
Selling expenses ..................................................
General expenses ................................................
Interest expense ..................................................
Losses ..................................................................
Income tax expense .............................................
Total expenses and losses .............................
Income from continuing operations ..........................
Discontinued operations
Operating Income less income tax ......................
Loss (Gain) on sale of discontinued operat ions
less income tax ................................................
Income before extraordinary items and cumulative
effect of change in accounting methods ................
Extraordinary items less income tax ........................
Cumulative effect of change in accounting method
less income tax .......................................................
Net Income ................................................................
$xxx,xxx
xx,xxx
xxx,xxx
$xxx,xxx
xx,xxx
xx,xxx
xx,xxx
xx,xxx
xx,xxx
xxx,xxx
xx,xxx
xx,xxx
xx,xxx
Earnings per share:
Income from continuing operation ($ Amt / shares) ....................................
Income from discontinued operations ($ Amt / shares) ...............................
Income before extraordinary items and cumulative
effect of change in accounting methods ($ Amt / shares) .........................
Extraordinary item ($ Amt / shares) ............................................................
Cumulative effect of change in accounting methods ($ Amt / shares) .......
Net Income ($ Amt / shares) .......................................................................
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Student Learning Assistance Center, San Antonio College, 2004
xx,xxx
xx,xxx
xx,xxx
x,xxx
$ xx,xxx
$x.xx
x.xx
x.xx
x.xx
x.xx
$x.xx
Accounting Notes
Corporate Income Statement, Stock Dividends, Treasury Stock
Stock Dividends:
Small Stock dividend (less than 25%)
Declaration
Retained Earnings
Common Stock Dividend Distributable
Paid-In Capital in Excess of Par, Common
Debit
Credit
Shares * Market Value
Shares * Par Value
Excess (MV - PV)
Distribution
Common Stock Dividend Distributable
Common Stock
Par Value
Par Value
Large Stock dividend (25% or more)
Declaration
Retained Earnings
Common Stock Dividend Distributable
Debit
Shares * Par Value
Credit
Shares * Par Value
Distribution
Common Stock Dividend Distributable
Common Stock
Par Value
Par Value
Treasury Stock Transactions:
Purchase of Treasury Stock
Treasury Stock, Common
Cash
Debit
Shares * Cost/share
Credit
Shares * Cost/share
Resale of Treasury Stock at cost
Cash
Treasury Stock, Common
Shares * Cost/share
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Student Learning Assistance Center, San Antonio College, 2004
Shares * Cost/share
Accounting Notes
Corporate Income Statement, Stock Dividends, Treasury Stock
Treasury Stock Transactions (cont.):
Resale of Treasury Stock above cost
Debit
Credit
Cash
Shares * Sales Price
Treasury Stock, Common
Shares * Cost/share
Paid In Capital from Treasury Stock transactions
Excess
Resale of Treasury Stock below cost
Cash ..................................................................
Paid In Capital from Treasury
Stock transactions .......................................
Retained Earnings .............................................
Treasury Stock ............................................
Shares * Sales Price
Amount up to prior balance
Excess amount
Shares * Cost/share
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Student Learning Assistance Center, San Antonio College, 2004