Through the duration of the first three weeks of the accounting 291 course learning team A has acquired knowledge of different accounting methods. The three main objective during week three include stocks that corporations issue such as common stock, preferred stock, and treasury stock. Learning team A also discovered methods to tell the stocks apart through their differences. The second main point that week three spoke about was calculate stocks, dividends, and split stocks and their definitions and how corporations use them. The first objective that learning team a discussed during week three was the three different types of stocks that corporations issue. Common stock gives stockholders the ability to vote on actions that deal with the earnings of corporations through the acquisition of dividends, and keeping a percentage of shares the same when the company issues new stock. Corporations issue preferred stock to spike the interest of more investors. Treasury stock is a company's own stock that was issued and subsequently reacquired from the shareholders but not retired. There are many areas of confusion when dealing with the different type of stocks for instance, dealing with authorized stock and the reasons companies do not place par value on a stock to determine the value. The team also has confusion with comprehending treasury stock. Collectively it was easy to understand the differences between the three types of stock a corporation issues. The second objective covered was calculating stocks, dividends, and split stocks. This portion although appearing easy to comprehend has made the minds of each individual work extra hard. Stock is buying into ownership of a company. It is buying into their assets as well as their earnings. To calculate stock one must understand how to calculate the earnings per share. To ascertain the income for every portion take the net profit and isolate by the extraordinary offers. profits are money dispersions that organizations...
References: HOUGHTON MIFFLIN HARCOURT. (2013). Accounting for Stock Transactions . Retrieved from http://www.cliffsnotes.com/more-subjects/accounting/accounting-principles-ii/corporations/accounting-for-stock-transactions
John Wiley & Sons, Inc.. (2013). Treasury Stock Transactions . Retrieved from http://www.dummies.com/how-to/content/treasury-stock-transactions.html
Weygandt, J.J., Kimmel, P.D., & Kieso, D.E. (2010). Financial accounting (7th ed.). Hoboken, NJ: John Wiley & Sons
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