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BUS A312
EXAM 1 REVIEW SHEET

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CHAPTER 15: Stockholders' Equity
Know the different types of accounts that can be reported in the stockholders' equity section of a corporation and the order in which they are presented.
Record transactions related to the issuance of common stock and preferred stock including lump sum sales.
Distinguish between the terms authorized, issued, and outstanding.
Accounting treatment of stock subscriptions, exchange of assets for stock, and stock issue costs
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Record transactions related to treasury stock including initial purchase and subsequent resale (using the cost method) or retirement.
Distinguish between unappropriated and appropiated retained earnings.
Record transactions regarding the following types of dividends: cash, property, liquidating, and stock (both large and small).
Accounting treatment of stock splits.
Understand the difference between cumulative versus noncumulative and participating and nonparticipating preferred stock; be able to distribute a declared dividend between preferred and common stockholder under these various features of preferred stock.

CHAPTER 18: Revenue Recognition
Revenue recognition before delivery (calculations, journal entries, impact on financial statements): percentage-of-completion method vs completed-contract method.