COMMERCE 1AA3 Study Guide - Final Guide: Retained Earnings

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1AA3
• Professor: Aadil Merali Juma

Document Summary

Cooperation: has most of rights and privileges of a person, profit purpose or non-profit purpose, public ownership or private ownership, characteristics: Common shares: selling common share is the way that the corporation raise capital: share terminology. Maximum amount of shares a corporation is allowed to sell as authorized by corporate charter. Number of share sold less treasury share: par value prohibited under cbca and most provincial. Issuance of common shares corporation acts: no par value share, ipos and seasoned equity offering, sale of shares in secondary market. Preferred share preference: liquidation preference, cumulative (dividends in arrears, convertible , redeemable/callable, retractable. Preferred shares for common shares: have to in order, accounting for preferred shares follows the pattern illustrated. Preferred shares, common shares, contributed surplus, accumulated other comprehensive income, retained earnings: the journal entry is same as common share. Preferred shares regards to: preferred shares have priority over common share with.