Corporation Accounting

Front Cover
Ronald Press Company, 1916 - Corporations - 563 pages

From inside the book

Contents

Capital Stock 12 Shares of Stock
12
Stockholders
13
Certificates of Stock
14
Voting
15
Advantages of the Corporate Form 17 Disadvantages of the Corporate Form 18 Summary of Taxes and Reports 19 The Corporate Records II KINDS...
16
Shares Without Par Value
17
The Functions of Corporate Stock 24 Nature of Stock
18
Issued and Unissued Stock 26 FullPaid and Partly Paid Stock
19
Treasury StockDonated Stock
21
MEETINGS THE CORPORATE CALENDAR
30
Annual MeetingClosing Transfer Books
36
Form of Corporate Calendar
42
Page I
48
Instalment Receipts
53
Chapter Page XXV PREPARATION OF STATEMENTS MANU FACTURING CORPORATION 352
54
Stock Scrip 58 The Instalment Book
57
THE BOOKS AND RECORDS OF A CORPORA TION Continued 59 Treasurers Receipt for Subscription Pay ment 60 Stock Certificate Book
60
Assignment of Stock Certificate
64
Stock Transfer Book
66
Register of Transfers
67
Stock Register
69
Stock Book or Stock Ledger
71
Form of Stock Book or Stock Ledger
72
Dividend Book
76
Dividend Order
79
DISTINCTIVE CORPORATE ACCOUNTS 69 Accounts Peculiar to Corporate Bookkeeping 70 Capital StockCommon
80
Capital StockPreferred
81
Capital Stock Authorized
82
Unissued Stock
83
Subscriptions to Stock
84
Capital Stock Subscribed
85
Instalment Account
86
Treasury Stock 78 Donation Account
87
Premium on Capital Stock
88
Capital Stock Without Par Value
89
Organization Expenses
92
Surplus
93
Dividends
94
Bonds 85 Bond Premium
95
Bond Discount
96
Interest on Bonds 88 Accrued Interest on Bonds
97
Sinking Fund 90 Sinking Fund Reserve
98
PART IIISPECIAL ENTRIES RELATING
101
TREASURY STOCK AND STOCK OF OTHER
119
60
121
TRANSACTIONS IN STOCK OF OTHER CORPORATIONS 113 Purchase and Sale of Stock of Other Cor porations
128
Entries for Purchase and Sale of Stock of Other Corporations
129
Entries When Stock is Exchanged for Stock of Other Corporations
130
DIVIDENDS AND THEIR ENTRY 116 The Nature of Dividends 117 Directors Powers as to Dividends
133
Informal Distribution of Corporate Profits 119 SurplusEqualizing Dividends
134
Declaration of Dividends
135
Notice of Dividend 122 Ownership of Dividends
136
Payment of Dividends
137
Dividend Sheet or Book
138
Filing the Certificate of Incorporation
140
Entries for Cash Dividends
141
Minutes of First Meeting of Stockholders ByLaws
142
Dividends Paid with Borrowed Money
143
Entries for Scrip Dividend
144
Entries for Special and Interim Dividends X DIVIDENDS AND THEIR ENTRY Con tinued
145
Entries for Dividends Applied to Stock Subscriptions
147
Entries for Cumulative Dividends
149
Entries for Stock Dividends
151
Entries for Bond Dividends
152
Bank Dividends 134 Property Dividends
153
Unearned Dividends
154
PROPRIETORSHIP INCORPORATED NEW YORK 136 Organization Procedure 137 General Provisions
156
Financial Details of the Incorporation
157
Certificate of Incorporation
158
Cash Book Entries 146 Other Entries
165
MANUFACTURING AND MINING CORPORA TIONS MANUFACTURING CORPORATION 147 Details of Incorporation 148 Statutory Records
166
The Books of Account 150 Journal Entries
167
Cash Book Entries 152 The Ledger Accounts
170
MINING CORPORATION 153 Details of Incorporation
171
Page
172
Entries for Donated Stock
173
Entries for Forfeited Subscription
175
PARTNERSHIPS INCORPORATED 157 GoodWill
177
Determination of the Value of GoodWill
178
Accounting Treatment of GoodWill
179
Conditions of the Incorporation
180
Agreement for Incorporation
181
Allotment of Stock 163 Underwriting Expenses
183
Balance Sheets of the Incorporating Firms
185
Statutory Requirements 166 Opening Entries
186
Closing the Partnership Books
191
Closing Entries on Books of Lowell Ma son Company
192
Closing the Books of Oliver Dickson
194
Balance Sheet of New Company
195
PART IVCORPORATE BOND ISSUES Chapter XIV THE CORPORATION BOND 171 Nature of the Bond
197
Authorization of Bond Issues
198
Constitutional and Statutory Provisions Af fecting Bond Issues 174 Procedure in Issuing Bonds
199
Preparation of Bonds
201
Terms Used in Connection with Bonds
202
177
203
Sinking Funds
204
Sale of Bonds 180 Liabilities of Vendor
205
Rights of Holders
206
Deed of Trust
207
CLASSIFICATION OF BONDS XVI 182 General Classification 183 Debentures
208
Mortgage Bonds
209
Coupon Bonds 186 Registered Bonds
210
Kinds of Bonds 188 First Mortgage etc Bonds 189 Junior Lien etc Bonds
212
Gold etc Bonds 191 Convertible Bonds
213
Serial Bonds
214
Redeemable Bonds
215
ProfitSharing etc Bonds
216
Income Bonds 196 Collateral Trust Bonds
217
Guaranteeed Bonds 198 Consolidated etc Bonds 199 Interest Bonds
218
Terminal etc Bonds 201 202 Car Trust Bonds
219
Purchase Money Bonds
220
Duties of Trustee 210 Execution and Filing of Deed of Trust
230
The Bond Register 212 Form of Bond Register
231
Payment of Coupons
236
The Coupon Register
237
BOND SALES 215 Selling the Bonds
239
Bond Issue Regulations
240
First Mortgage Bonds Sold at
241
Entry on Sale of Bonds
242
Bonds Sold at Par and Accrued Interest
243
Bond Subscriptions Paid for in Instal ments 220
244
Guaranteed Bonds Entries for Collateral Trust Bonds
245
Entries for Short Term Notes 224 Entries for Equipment Trust Serial Bonds
248
BOND INTEREST 225 Paying Bond Interest 226 Method of Handling Interest Coupons
252
Interest on Registered Bonds 228 Bond Interest Accrued Monthly
255
Interest on Two or More Bond Issues
257
Interest on Treasury Bonds
259
Interest on Guaranteed Bonds 232 Interest on Income Bonds
261
Interest on Special Bond Issues
262
Interest Charged to Construction
263
Income from Investments
264
BOND DISCOUNT AND PREMIUM 236 Bonds Sold Above or Below
266
Bonds Sold Between Interest Dates
267
Expenses of Bond Issue 239 Entries for Bond Discount and Expense
268
Entries for Bond Premium 241 Nature of Bond Premium and Discount
269
Treatment of Bond Premium and Discount 243 Effective Rate Method
270
4 Redemption of Serial Bonds
271
Varying Conditions Affecting Annual Charge
272
Redemption of Collateral Trust Bonds
273
Methods of Determining Charge to Income
274
252
284
Annuity Method for Sinking Funds 254 Calculating Fund Annuities
285
Sinking Fund to Retire Preferred Stock
287
SINKING FUNDS Continued 256 Sinking Fund Account
289
RESERVE FUNDS
290
Entries for Sinking Fund Instalments
291
Entries for Sinking Fund Interest
292
Entries for Sinking Fund Investments
293
Entries for Investment in Issuing Com panys Bonds
295
Entries for Bonds Cancelled Through Sink ing Fund
297
Entries for Sinking Fund Reserve
299
300 Trial Balance
300
The Sinking Fund on the Balance Sheet
301
Entries on Books of Sinking Fund Trustee
302
Trading and Profit and Loss Account
303
Closing Entries in Journal
304
REDEMPTION OF BONDS 265 Plans for Redeeming Bonds
305
266
306
ing Fund
307
2 Bonds Drawn by Lot for Redemption
308
Entries for Bonds Called for Redemption 269 3 Refunding Bonds
310
Entries for Refunding Bonds
312
Short Term Notes
316
BOND FORMS 204 Form of Bond Page
322
Secret and Hidden Reserves
325
Depreciation 286 Methods of Handling Depreciation
327
Reserve for Depreciation 288 Operation of Reserve for Depreciation Ac count
330
Sinking Fund for Exhaustion of Mines
331
Insurance Benefit and Accident Funds
333
Surplus or Undivided Profits Account
334
Contributed Surplus
335
Investments of Surplus
336
FORMS OF STATEMENTS 294 Corporate Reports 295 Necessity for Reports
338
Form of Statements 297 Balance Sheets
339
Statements of Income and Profit and Loss
343
Statement of Cash Receipts and Disburse
349
133
359
PREPARATION OF STATEMENTSTRADING CORPORATION
365
320
366
197
367
Balance Sheet
368
Closing Journal Entries
370
Comments on Closing of BryantChase Companys Books
372
CORPORATE REPORTS
374
Reports of Officers and Committees
375
Committee Reports 315 Auditors Report
376
General Managers Report
379
Treasurers Report
380
Presidents Report
381
Statutory Corporation Reports
384
The Annual Report
385
Federal Corporation Report 322 Taxable Corporations
386
Exempted Corporations
387
Return Made for Either Calendar or Fiscal Year
389
PART VICORPORATE COMBINATIONS XXVIII METHODS OF CONSOLIDATION
390
Methods of Corporate Consolidation or Control
391
XXX
392
Expert Investigations ACCOUNTING INVESTIGATION PRELIMINARY TO CONSOLIDATION 328 Scope of Investigation
393
Report on Assets
394
Report on Liabilities
397
Revenue and Expense Accounts
398
Cost of Operation
399
Reports and Certificates
400
CONSOLIDATION BY MERGER 334 General Procedure for Merger 335 General Conditions of the Merger
403
Statement of Concerns to be Merged
404
Terms of Merger
406
338
408
Procedure for Consolidation
409
Opening Entries on Books of New Cor poration 341 1 Entries for Issuance of Stock and Bonds
411
ments
412
2 Entries for Assets and Liabilities Taken Over
413
3 Entries for Retirement of Outstanding Bonds and Mortgages of the Merging Concerns
416
4 Entries Relating to Sale of Securities
417
5 Entry in Settlement of Intercompany Obligations
418
The Conduct of the Branches
419
Closing Entries for Long Company
421
Closing Entries for Vine Company Bell Davis 349 Closing Entries for Bain Company
423
Balance Sheet for Bain Branch 351 Consolidated Balance Sheet of New Cor poration
426
Consolidation by Purchase
428
CONSOLIDATION BY LEASE 353 Leases
429
Entries for Property Leased
430
Entries for Guarantees 356 Lease Terms
431
Entries for Lease of Mine
433
Entries for Lease of Railway
434
Entries for Improvements and Note Issue
435
Adjusting Entries at End of First Year
436
Entries for Union Mining Company
437
Balance Sheet of Union Mining Company
438
Entries for Wilson Transportation Com pany
439
HOLDING COMPANIES
441
Status of the Subsidiary Company 367 Legality of Holding Companies
442
Accounting Procedure of Holding Company
443
Accounting Requirements
444
Operating Company Purchasing Controlling Interest
446
Entries on Books of Purchasing Company
449
Entries on Books of Selling Company
450
The Consolidated Balance Sheet
451
Parent Companies
454
CONSOLIDATED BALANCE SHEETS 375 Purposes of Consolidated Balance Sheet 376 Contents of Consolidated Balance Sheet
456
Preparation of Consolidated Balance Sheet
457
Consolidated Balance Sheet with Inter company Details
459
Consolidated Balance Sheet without Inter company Details
460
Additional Illustrations of Consolidated Balance Sheets
462
Consolidated Income Account
468
PART VIIREORGANIZATIONS RECEIVER SHIPS AND DISSOLUTIONS Chapter Page XXXIII REORGANIZATION BY AGREEMENT
469
Reorganization by Reduction of Stock
470
Balance Sheet Before Reduction of Capital Stock
471
Accounting Requirements
472
a Procedure 388 b Entries and Records
473
Conditions of Reorganization
475
Balance Sheet Before Adjustment
476
Plan of Adjustment Adopted
477
Accounting Requirements
478
Page
479
RECEIVERSHIP
481
Powers of Receivers
482
Liability of Receivers
484
Receivers in Bankruptcy Cases 398 The Receivers Accounts
485
The Companys Accounts During Receiver ship
486
RECEIVERSHIP AND REORGANIZATION
487
Reorganization Agreement
488
Conditions Preceding Receivership 403 Statement of Affairs
490
The Receivers Activities
492
Accounting Procedure
493
1 Receivers Records on Taking Charge
494
208
496
4 Receivers Statement to the Court
500
5 Adjustment of Companys Books
503
RECEIVERSHIP AND SALE
508
Appointment of Receiver
509
DISSOLUTION OF CORPORATIONS
515
APPENDIXINCORPORATION FORMS
529
456
544
221
545
147
548
156
549
289
555
305
559
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Page 388 - Clubs organized and operated exclusively for pleasure, recreation and other non-profitable purposes, no part of the net earnings of which inures to the benefit of any private stockholder or member. 10. Farmers...
Page 268 - Debt expense" means all expenses in connection with the issuance and sale of evidences of debt, such as fees for drafting mortgages and trust deeds: fees and taxes for issuing or recording evidences of debt cost of engraving and printing bonds, certificates of indebtedness, and other commercial paper...
Page 531 - Board, and shall give bond for the faithful performance of his duties in such sum and with such sureties as may be required by the Board of Directors.
Page 528 - The certificate of incorporation of any stock corporation may provide that at all elections of directors of such corporation, each stockholder shall be entitled to as many votes as shall equal the number of his shares of stock multiplied by the number of directors to be elected, and that he may cast all of such votes for a single director or may distribute them among the number to be voted for, or any two or more of them as he may see fit, which right, when exercised, shall be termed cumulative voting.
Page 64 - For value received hereby sell, assign, and transfer unto shares of the capital stock represented by the within certificate and do hereby irrevocably constitute and appoint attorney to transfer the said stock on the books of the within named company with full power of substitution in the premises.
Page 186 - It shall be the duty of the directors or trustees of every stock corporation to cause to be kept at its principal office or place of business in this State, correct books of account of all its business, and every stockholder in such corporation shall have the right at all reasonable times, by himself or by his attorney, to examine the records and books of account of the corporation.
Page 528 - On this day of 1966, before me personally appeared to me known to be the persons described in and who executed the foregoing instrument, and acknowledged that they executed the same as their free act and deed.
Page 388 - Benevolent life insurance associations of a purely local character, mutual ditch or irrigation companies, mutual or cooperative telephone companies, or like organizations; but only if 85 per centum or more of the income consists of amounts collected from members for the sole purpose of meeting losses and expenses; (11) Farmers...
Page 225 - Company has caused these presents to be signed by its President, and its corporate seal to be hereunto affixed, and to be attested by its Secretary...
Page 204 - For the purposes of the balance sheet statement, funded debt securities are considered to be nominally issued when certified by trustees and placed with the proper officer for sale and delivery or pledged or otherwise placed in some special fund of the accounting company. They are considered to be actually issued...

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